Cover
Cover - USD ($) $ in Billions | 12 Months Ended | ||
Dec. 31, 2021 | Mar. 24, 2022 | Sep. 23, 2021 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2021 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Transition Report | false | ||
Entity File Number | 021-344104 | ||
Entity Registrant Name | Remitly Global, Inc. | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 83-2301143 | ||
Entity Address, Address Line One | 1111 Third Avenue, | ||
Entity Address, Address Line Two | Suite 2100 | ||
Entity Address, City or Town | Seattle, | ||
Entity Address, State or Province | WA | ||
Entity Address, Postal Zip Code | 98101 | ||
City Area Code | 888 | ||
Local Phone Number | 736-4859 | ||
Title of 12(b) Security | Common Stock, $0.0001 par value | ||
Trading Symbol | RELY | ||
Security Exchange Name | NASDAQ | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | true | ||
Entity Ex Transition Period | false | ||
ICFR Auditor Attestation Flag | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 4.6 | ||
Entity Common Stock, Shares Outstanding | 166,083,626 | ||
Entity Central Index Key | 0001782170 | ||
Document Fiscal Year Focus | 2021 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Documents Incorporated by Reference | The information required by Part III (Items 10, 11, 12, 13, and 14) is incorporated by reference from the registrant’s Definitive Proxy Statement for its 2022 Annual Meeting to be filed with the Securities and Exchange Commission pursuant to Regulation 14A. |
Audit Information
Audit Information | 12 Months Ended |
Dec. 31, 2021 | |
Audit Information [Abstract] | |
Auditor Name | PricewaterhouseCoopers LLP |
Auditor Firm ID | 238 |
Auditor Location | Seattle, Washington |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Current assets | ||
Cash and cash equivalents | $ 403,262 | $ 186,694 |
Disbursement prefunding | 119,627 | 101,558 |
Customer funds receivable, net | 67,215 | 50,729 |
Prepaid expenses and other current assets | 17,448 | 6,350 |
Total current assets | 607,552 | 345,331 |
Restricted cash | 51 | 1,381 |
Property and equipment, net | 9,249 | 9,675 |
Operating lease right-of-use assets | 5,302 | 5,605 |
Other non-current assets, net | 3,510 | 997 |
Total assets | 625,664 | 362,989 |
Current liabilities | ||
Accounts payable | 1,210 | 4,256 |
Borrowings | 0 | 80,000 |
Customer liabilities | 70,483 | 54,819 |
Accrued expenses and other current liabilities | 66,683 | 39,742 |
Operating lease liabilities | 3,240 | 2,959 |
Total current liabilities | 141,616 | 181,776 |
Operating lease liabilities, non-current | 2,907 | 4,008 |
Other non-current liabilities | 813 | 827 |
Total liabilities | 145,336 | 186,611 |
Commitments and contingencies (Note 14) | ||
Redeemable convertible preferred stock, $0.0001 par value per share; 50,000,000 and 132,674,735 shares authorized as of December 31, 2021 and 2020, respectively; zero and 127,082,605 shares issued and outstanding as of December 31, 2021 and 2020, respectively; liquidation preference of zero and $399,815 as of December 31, 2021 and 2020, respectively | 0 | 387,707 |
Stockholders' equity (deficit) | ||
Common stock, $0.0001 par value; 725,000,000 and 190,000,000 shares authorized as of December 31, 2021 and 2020, respectively; 164,239,555 and 24,289,906 shares issued and outstanding, as of December 31, 2021 and 2020, respectively | 16 | 2 |
Additional paid-in capital | 739,503 | 8,766 |
Accumulated other comprehensive income | 253 | 591 |
Accumulated deficit | (259,444) | (220,688) |
Total stockholders' equity (deficit) | 480,328 | (211,329) |
Total liabilities, redeemable convertible preferred stock, and stockholders' equity (deficit) | $ 625,664 | $ 362,989 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Preferred stock, authorized (in shares) | 50,000,000 | 132,674,735 |
Preferred stock, issued (in shares) | 0 | 127,082,605 |
Preferred stock, outstanding (in shares) | 0 | 127,082,605 |
Liquidation preference | $ 0 | $ 399,815,000 |
Common stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Common stock, authorized (in shares) | 725,000,000 | 190,000,000 |
Common stock, issued (in shares) | 164,239,555 | 24,289,906 |
Common stock, outstanding (in shares) | 164,239,555 | 24,289,906 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | ||
Revenue | $ 458,605 | $ 256,956 | $ 126,567 | |
Costs and expenses | ||||
Marketing | [1] | 120,906 | 73,804 | 43,542 |
Technology and development | [1] | 64,093 | 40,777 | 32,008 |
General and administrative | [1] | 70,941 | 31,656 | 25,658 |
Depreciation and amortization | 5,256 | 4,060 | 2,658 | |
Total costs and expenses | 498,327 | 286,139 | 177,169 | |
Loss from operations | (39,722) | (29,183) | (50,602) | |
Interest income | 140 | 273 | 1,111 | |
Interest expense | (1,256) | (1,189) | (1,608) | |
Other income (expense),net | 3,125 | (1,302) | (34) | |
Loss before provision for income taxes | (37,713) | (31,401) | (51,133) | |
Provision for income taxes | 1,043 | 1,163 | 259 | |
Net loss | (38,756) | (32,564) | (51,392) | |
Deemed dividend on redeemable convertible preferred stock | 0 | 0 | 12,134 | |
Net loss attributable to common stockholders | (38,756) | (32,564) | (63,526) | |
Net loss attributable to common stockholders | $ (38,756) | $ (32,564) | $ (63,526) | |
Earnings Per Share [Abstract] | ||||
Basic (in dollars per share) | $ (0.64) | $ (1.52) | $ (2.98) | |
Diluted (in dollars per share) | $ (0.64) | $ (1.52) | $ (2.98) | |
Weighted-average shares used in computing net loss per share attributable to common stockholders: | ||||
Basic (in shares) | 60,728,748 | 21,459,062 | 21,290,784 | |
Diluted (in shares) | 60,728,748 | 21,459,062 | 21,290,784 | |
Transaction expenses | ||||
Costs and expenses | ||||
Cost of revenue | [1] | $ 191,606 | $ 110,414 | $ 55,858 |
Customer support and operations | ||||
Costs and expenses | ||||
Cost of revenue | [1] | $ 45,525 | $ 25,428 | $ 17,445 |
[1] | Exclusive of depreciation and amortization, shown separately, above |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Statement of Comprehensive Income [Abstract] | |||
Net loss | $ (38,756) | $ (32,564) | $ (51,392) |
Other comprehensive income (loss): | |||
Foreign currency translation adjustments | (338) | 557 | 67 |
Comprehensive loss | $ (39,094) | $ (32,007) | $ (51,325) |
Consolidated Statements of Rede
Consolidated Statements of Redeemable Converted Preferred Stock and Stockholders’ Equity (Deficit) - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Accumulated Other Comprehensive Income (Loss) | Accumulated Deficit |
Temporary equity, beginning balance (in shares) at Dec. 31, 2018 | 97,420,191 | ||||
Temporary equity, beginning balance at Dec. 31, 2018 | $ 173,958 | ||||
Redeemable Convertible Preferred Stock | |||||
Issuance of Series F redeemable convertible preferred stock, net of issuance costs (in shares) | 22,663,933 | ||||
Issuance of Series F redeemable convertible preferred stock, net of issuance costs | $ 129,770 | ||||
Repurchase and retirement of preferred stock in connection with tender offer (in shares) | (2,295,603) | ||||
Repurchase and retirement of preferred stock in connection with tender offer | $ (855) | ||||
Temporary equity, ending balance (in shares) at Dec. 31, 2019 | 117,788,521 | ||||
Temporary equity, ending balance at Dec. 31, 2019 | $ 302,873 | ||||
Beginning balance (in shares) at Dec. 31, 2018 | 22,595,886 | ||||
Beginning balance at Dec. 31, 2018 | (121,004) | $ 2 | $ 2,773 | $ (33) | $ (123,746) |
Stockholders' Equity | |||||
Repurchase and retirement of common stock in connection with tender offer (in shares) | (2,053,690) | ||||
Repurchase and retirement of common stock in connection with tender offer | (19,159) | (6,173) | (12,986) | ||
Issuance of common stock upon exercise of stock options and vesting of early exercised options, and vesting restricted stock units (in shares) | 1,882,916 | ||||
Issuance of common stock upon exercise of stock options and vesting of early exercised options, and vesting restricted stock units | 1,044 | 1,044 | |||
Stock-based compensation expense | 3,648 | 3,648 | |||
Other comprehensive loss | 67 | 67 | |||
Net loss | (51,392) | (51,392) | |||
Ending balance (in shares) at Dec. 31, 2019 | 22,425,112 | ||||
Ending balance at Dec. 31, 2019 | $ (186,796) | $ 2 | 1,292 | 34 | (188,124) |
Redeemable Convertible Preferred Stock | |||||
Issuance of Series F redeemable convertible preferred stock, net of issuance costs (in shares) | 9,294,084 | ||||
Issuance of Series F redeemable convertible preferred stock, net of issuance costs | $ 84,834 | ||||
Temporary equity, ending balance (in shares) at Dec. 31, 2020 | 127,082,605 | ||||
Temporary equity, ending balance at Dec. 31, 2020 | $ 387,707 | ||||
Stockholders' Equity | |||||
Issuance of common stock upon exercise of stock options and vesting of early exercised options, and vesting restricted stock units (in shares) | 1,864,794 | ||||
Issuance of common stock upon exercise of stock options and vesting of early exercised options, and vesting restricted stock units | 2,212 | 2,212 | |||
Stock-based compensation expense | 5,262 | 5,262 | |||
Other comprehensive loss | 557 | 557 | |||
Net loss | (32,564) | (32,564) | |||
Ending balance (in shares) at Dec. 31, 2020 | 24,289,906 | ||||
Ending balance at Dec. 31, 2020 | $ (211,329) | $ 2 | 8,766 | 591 | (220,688) |
Redeemable Convertible Preferred Stock | |||||
Issuance of Series F redeemable convertible preferred stock, net of issuance costs (in shares) | 328,026 | ||||
Issuance of Series F redeemable convertible preferred stock, net of issuance costs | $ 2,980 | ||||
Conversion of redeemable convertible preferred stock to common stock in connection with direct listing (in shares) | (127,410,631) | ||||
Conversion of redeemable convertible preferred stock to common stock in connection with initial public offering | $ (390,687) | ||||
Temporary equity, ending balance (in shares) at Dec. 31, 2021 | 0 | ||||
Temporary equity, ending balance at Dec. 31, 2021 | $ 0 | ||||
Stockholders' Equity | |||||
Issuance of common stock in a business combination (in shares) | 25,759 | ||||
Issuance of common stock | 169 | 169 | |||
Repayment of non-recourse promissory note | 3,060 | 3,060 | |||
Conversion of redeemable convertible preferred stock to common stock in connection with initial public offering (in shares) | 127,410,631 | ||||
Conversion of redeemable convertible preferred stock to common stock in connection with initial public offering | 390,687 | $ 13 | 390,674 | ||
Issuance of common stock upon initial public offering and private placements, net of offering costs, underwriting discounts and commissions (in shares) | 7,581,395 | ||||
Issuance of common stock upon initial public offering and private placements, net of offering costs, underwriting discounts and commissions | 305,191 | 305,191 | |||
Donation of common stock (in shares) | 181,961 | ||||
Donation of common stock | 6,933 | 6,933 | |||
Issuance of common stock upon exercise of warrants (in shares) | 254,014 | ||||
Issuance of common stock upon exercise of stock options and vesting of early exercised options, and vesting restricted stock units (in shares) | 4,495,889 | ||||
Issuance of common stock upon exercise of stock options and vesting of early exercised options, and vesting restricted stock units | 7,421 | $ 1 | 7,420 | ||
Stock-based compensation expense | 17,290 | 17,290 | |||
Other comprehensive loss | (338) | (338) | |||
Net loss | (38,756) | (38,756) | |||
Ending balance (in shares) at Dec. 31, 2021 | 164,239,555 | ||||
Ending balance at Dec. 31, 2021 | $ 480,328 | $ 16 | $ 739,503 | $ 253 | $ (259,444) |
Consolidated Statements of Re_2
Consolidated Statements of Redeemable Converted Preferred Stock and Stockholders’ Equity (Deficit) (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Statement of Stockholders' Equity [Abstract] | |||
Deferred offering costs | $ 20 | $ 167 | $ 5,230 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Cash flows from operating activities | |||
Net loss | $ (38,756) | $ (32,564) | $ (51,392) |
Adjustments to reconcile net loss to net cash (used in) provided by operating activities | |||
Depreciation and amortization | 5,256 | 4,060 | 2,658 |
Stock-based compensation expense, net | 17,016 | 5,264 | 3,648 |
Donation of common stock | 6,933 | 0 | 0 |
Other | 452 | 2 | 37 |
Changes in operating assets and liabilities: | |||
Disbursement prefunding | (18,069) | (69,719) | 17,105 |
Customer funds receivable | (17,282) | (20,028) | (17,410) |
Prepaid expenses and other assets | (12,559) | (1,959) | (2,235) |
Operating lease right-of-use assets | 2,780 | 2,376 | 1,997 |
Accounts payable | (3,035) | 4,044 | (1,488) |
Customer liabilities | 16,097 | (29,073) | 54,182 |
Accrued expenses and other liabilities | 26,071 | 25,935 | 3,526 |
Operating lease liabilities | (3,295) | (2,547) | (2,193) |
Net cash (used in) provided by operating activities | (18,391) | (114,209) | 8,435 |
Cash flows from investing activities | |||
Purchases of property and equipment | (1,956) | (2,064) | (5,049) |
Capitalized internal-use software costs | (2,578) | (2,306) | (2,160) |
Net cash used in investing activities | (4,534) | (4,370) | (7,209) |
Cash flows from financing activities | |||
Proceeds from issuance of common stock upon initial public offering and the private placement, net of underwriting discounts and commissions and other offering costs | 305,191 | 0 | 0 |
Repayment of non-recourse promissory note | 3,060 | 0 | 0 |
Repurchase and retirement of common stock in connection with tender offer | 0 | 0 | (7,024) |
Repurchase and retirement of redeemable convertible preferred stock in connection with tender offer | 0 | 0 | (12,991) |
Proceeds from issuance of Series E and F convertible preferred stock, net of issuance costs | 2,980 | 84,834 | 129,770 |
Proceeds from exercise of stock options | 8,345 | 2,382 | 1,034 |
Payment of debt issuance costs | (1,373) | 0 | 0 |
Repayment of term loan | 0 | 0 | (2,772) |
Proceeds from (repayments of) revolving credit facility borrowings, net | (80,000) | 35,000 | 9,000 |
Net cash provided by financing activities | 238,203 | 122,216 | 117,017 |
Effect of foreign exchange rate changes on cash, cash equivalents and restricted cash | (40) | 918 | 329 |
Net increase in cash, cash equivalents and restricted cash | 215,238 | 4,555 | 118,572 |
Cash, cash equivalents, and restricted cash at beginning of period | 188,075 | 183,520 | 64,948 |
Cash, cash equivalents, and restricted cash at end of period | 403,313 | 188,075 | 183,520 |
Supplemental disclosure of cash flow information | |||
Cash paid for interest | 934 | 1,061 | 1,563 |
Cash paid for income taxes | 756 | 421 | 186 |
Supplemental disclosure of non-cash investing and financing activities | |||
Operating lease right-of-use assets obtained in exchange for operating lease liabilities | 2,532 | 1,523 | 8,455 |
Vesting of early exercised options | 482 | 185 | 36 |
Conversion of preferred stock to common stock | 390,687 | 0 | 0 |
Reconciliation of cash, cash equivalents and restricted cash | |||
Cash and cash equivalents | 403,262 | 186,694 | 182,354 |
Restricted cash | 51 | 1,381 | 1,166 |
Total cash, cash equivalents and restricted cash | $ 403,313 | $ 188,075 | $ 183,520 |
Organization and Description of
Organization and Description of Business | 12 Months Ended |
Dec. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Description of Business | Organization and Description of Business Description of Business Remitly Global, Inc. (the “Company” or “Remitly”) was incorporated in the State of Delaware in October 2018 and is headquartered in Seattle, Washington, with various other global office locations. Remitly is a leading digital financial services provider for immigrants and their families in over 150 countries, helping customers send money internationally in a quick, reliable, and more cost-effective manner, by leveraging digital channels and supporting cross-border transmissions across the globe. Unless otherwise expressly stated or the context otherwise requires, the terms “Remitly” and the “Company” in these notes to the consolidated financial statements refer to Remitly Global, Inc. and its wholly-owned subsidiaries. Initial Public Offering and Private Placement In September 2021, the Company completed its initial public offering (the “IPO”), in which the Company issued and sold 7,000,000 shares of its common stock at $43.00 per share. Concurrently, 5,162,777 shares were sold by certain of the Company’s existing stockholders. In addition, the Company issued 581,395 shares of common stock to an existing stockholder in a private placement at the same offering price as the IPO. The Company received net proceeds of $305.2 million for the IPO and private placement, after deducting underwriting discounts and other fees of $20.8 million. In connection with the IPO, 127,410,631 shares of outstanding redeemable convertible preferred stock automatically converted into an equivalent number of shares of common stock on a one-to-one basis. |
Basis of Presentation and Summa
Basis of Presentation and Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Summary of Significant Accounting Policies | Basis of Presentation and Summary of Significant Accounting Policies Basis of Presentation and Principles of Consolidation The consolidated financial statements include the accounts of Remitly Global, Inc. and its wholly-owned subsidiaries. All intercompany transactions and balances have been eliminated in consolidation. In the opinion of management, these consolidated financial statements reflect all adjustments, consisting only of normal recurring adjustments, which are necessary for a fair statement of the consolidated financial statements for all periods presented. Use of Estimates The preparation of the accompanying consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported and disclosed in the consolidated financial statements and accompanying notes. These estimates and assumptions include, but are not limited to, revenue recognition including the treatment of sales incentive programs, reserves for transaction losses, stock-based compensation expense including the estimated fair value per share of common stock, the carrying value of operating lease right-of-use assets, the recoverability of deferred tax assets, and capitalization of software development costs. The Company bases its estimates on historical experience and on assumptions that management considers reasonable. Actual results could differ from these estimates and assumptions, and these differences could be material to the consolidated financial statements. Cash and Cash Equivalents The Company holds its cash and cash equivalents with financial institutions throughout the world, which management assesses to be of high credit quality. The Company considers all highly liquid investments with original maturities of three months or less at the time of purchase to be cash equivalents, so long as the Company has legal title to such amounts held in these accounts. Amounts that are held in accounts for which the Company does not have legal title to are recorded separately in our consolidated balance sheets, typically as disbursement prefunding balances. Cash and cash equivalents consist of cash on hand and various deposit accounts. Restricted Cash Restricted cash primarily consists of cash collateral that the Company maintains with various payment processors in connection with its contractual obligation. The Company has relationships with certain payment processors that are responsible for processing the Company’s incoming customer payments. These processors require the Company to maintain certain restricted cash balances as collateral throughout the term of the processor arrangement. As of December 31, 2021 and 2020, the Company had $0.1 million and $1.4 million of restricted cash, respectively. Restricted cash has been classified as a non-current asset on the consolidated balance sheets as it is not expected to be released within one year of the balance sheet date. Disbursement Prefunding The Company maintains relationships with disbursement partners in various countries. These partners are responsible for disbursing funds to recipients. The Company may maintain prefunding balances with these disbursement partners so that they are able to fulfill customer requests. The Company does not earn interest on these balances. The balances are not compensating balances and are not legally restricted. The Company is exposed to the risk of loss in the event the Company’s disbursement partners fail, for any reason, to disburse funds to recipients according to the Company’s instructions. Such reasons could include mistakes by the Company’s disbursement partners in processing payment instructions or failing to correctly classify and process error categories, or insolvency or fraud by the Company’s disbursement partners. The Company maintains a loss reserve for these accounts which is included in accrued expenses and other current liabilities within the consolidated balance sheets. However, historical losses for the disbursement funding accounts have been inconsequential. Customer Funds Receivable When customers fund their transactions using credit cards or debit cards, there is a clearing period before the cash is received by the Company from the payment processors of usually one business day. Similarly, when customers provide bank information and authorization for the Company to receive funds via electronic funds transfer, the transactions are submitted via batch and received in cash usually in one to three business days. These card and electronic funds are treated as a receivable from the bank until the cash is received by the Company. The Company does not maintain a reserve as historical losses have not been material. Foreign Currency Translation The functional currencies of the Company’s international subsidiaries in Canada, Australia, Ireland, United Kingdom, and Singapore are each country’s local currency. The functional currency of the Company’s international subsidiaries in Poland and Nicaragua is the U.S. dollar. The results of operations for the Company’s international subsidiaries, with functional currencies other than the U.S. dollar, are translated from the local currency into U.S. dollars using the average exchange rates during each period. All assets and liabilities are translated using exchange rates at the end of each period. All equity transactions and certain assets are translated using historical rates. The consolidated financial statements are presented in U.S. dollars. Fair Value of Financial Instruments The Company establishes the fair value of its certain assets and liabilities using the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities that are required to be recorded at fair value, the Company considers the principal or most advantageous market in which to transact and the market-based risk. The Company applies fair value accounting for all financial assets and liabilities that are recognized or disclosed at fair value in the consolidated financial statements on a recurring basis. The carrying values of cash equivalents, disbursement prefunding, customer funds receivable, prepaid expenses and other current assets, accounts payable, accrued expenses and other current liabilities, and customer liabilities approximate their respective fair values due to their relative short maturities. Fair value principles require disclosures regarding the manner in which fair value is determined for assets and liabilities and establishes a three-tiered fair value hierarchy into which these assets and liabilities must be grouped, based upon significant levels of inputs as follows: Level 1 Inputs are unadjusted quoted prices in active markets for identical assets or liabilities. Level 2 Inputs are quoted prices for similar assets and liabilities in active markets or inputs that are observable for the assets or liabilities, either directly or indirectly through market corroboration, for substantially the full term of the financial instruments. Level 3 Inputs are unobservable inputs based on the Company’s own assumptions used to measure assets and liabilities at fair value. The inputs require significant management judgment or estimation. Concentration of Credit Risk Financial instruments that potentially expose the Company to concentrations of credit risk consist primarily of cash and cash equivalents, disbursement prefunding, restricted cash, and customer funds receivable. The Company maintains cash and cash equivalents and restricted cash balances that may exceed the insured limits by the Federal Deposit Insurance Corporation. In addition, the Company funds its international operations using accounts with institutions in the major countries where its subsidiaries operate. The Company also prefunds amounts which are held by its disbursement partners, which typically include India, Philippines and Mexico. The Company has not experienced any significant losses on its deposits of cash and cash equivalents, disbursement prefunding, restricted cash or customer funds receivable in the years ended December 31, 2021, 2020, and 2019. For the years ended December 31, 2021, 2020, and 2019, no individual customer represented 10% or more of the Company’s total revenues. As of December 31, 2021 and December 31, 2020, no individual customer represented 10% or more of the Company’s customer funds receivable. Deferred Offering Costs Prior to the IPO, deferred offering costs, which consist of direct incremental legal, accounting, and consulting fees relating to the IPO, were capitalized and included in other non-current assets on the consolidated balance sheets. Upon completion of the IPO in September 2021, the Company reclassified $4.3 million of deferred offering costs to additional-paid-in capital offsetting the IPO proceeds. There were no material deferred offering costs recorded as of as of December 31, 2021 and December 31, 2020. Property and Equipment, Net Property and equipment is stated at cost, less accumulated depreciation and amortization. Depreciation and amortization are calculated using the straight-line method over the estimated useful lives of the assets as follows: Estimated Useful Lives Capitalized internal-use software 3 years Computer and office equipment 3 years Furniture and fixtures 5 years Leasehold improvements Lesser of useful life or remaining lease term When assets are retired or disposed of, the cost and accumulated depreciation are removed from the accounts, and any resulting gains or losses are included in the consolidated statements of operations in the period of disposition. Maintenance and repairs that do not improve or extend the lives of the respective assets are charged to expense in the period incurred. Leases A lease is defined as a contract, or part of a contract, that conveys the right to control the use of identified property, plant or equipment for a period of time in exchange for consideration. The Company adopted ASU No . 2016-02 “Leases - Topic 842” (“ASC 842”) and all subsequent ASUs that modified ASC 842 on January 1, 2020 and elected to apply the guidance to the comparative period. The Company’s lease commitments consist primarily of real estate property under various non-cancellable operating leases that expire between 2021 and 2024. The majority of the leases contain renewal options and provisions for increases in rental rates based on a predetermined schedule or an agreed upon index. If, at lease inception, the Company considers the exercise of a renewal option to be reasonably certain, the Company will include the extended term in the calculation of the right-of-use asset and lease liability. The Company determines if an arrangement is or contains a lease at inception by evaluating various factors, including if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration and other facts and circumstances. Lease classification is determined at the lease commencement date. Operating leases are included in operating lease right-of-use (“ROU”) assets and operating lease liabilities on the consolidated balance sheets. ROU assets represent the Company’s right to use an underlying asset for the lease term, and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. The lease liability is recognized at commencement date based on the present value of lease payments over the lease term. The ROU asset is initially measured at cost, which is based on the lease liability adjusted for lease prepayments, plus any initial direct costs incurred less any lease incentives received. As the rate implicit in most of its leases is not readily determinable, the Company generally uses its incremental borrowing rate based on the estimated rate of interest for collateralized borrowing over a similar term of the lease payments at commencement date. The Company’s lease terms may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. The Company utilized certain practical expedients and policy elections available under the lease accounting standard. The Company has elected to combine lease and non-lease components as a single lease component for its real estate leases. The Company also elected not to recognize ROU assets and lease liabilities on its consolidated balance sheets for leases that have a lease term of 12 months or less. The Company recognizes lease payments associated with its short-term leases as an expense on a straight-line basis over the lease term. Lease expense for operating leases is recognized on a straight-line basis over the lease term, which is the non-cancelable term adjusted for any renewal and termination options that are considered reasonably certain. Operating leases are included in operating lease ROU assets, operating lease liabilities, and operating lease liabilities, non-current on the consolidated balance sheets. During the years ended December 31, 2021, 2020, and 2019, the Company did not have any material finance leases. Impairment of Long-Lived Assets The Company reviews its long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be fully recoverable. When such events occur, management determines whether there has been impairment by comparing the anticipated undiscounted future net cash flows to the carrying value of the asset. If impairment exists, the asset is written down to its estimated fair value. During the years ended December 31, 2021, 2020, and 2019, no material impairment of long-lived assets was recorded. Customer Liabilities The Company recognizes transactions processed from customers but not yet disbursed to recipients as customer liabilities on the accompanying consolidated balance sheets. Customer liabilities are typically funds in-transit and the duration is typically one to two days. Revenue Recognition See Note 3 for information related to the Company’s revenue recognition policy. Sales Incentives The Company provides sales incentives to customers in a variety of forms, which includes promotions, discounts, and other sales incentives. Cash incentives given to customers are accounted for as reductions to revenue, up to the point where net historical cumulative revenue, at the customer level, is reduced to zero. Those additional incentive costs that would have caused the customer level revenue to be negative are classified as advertising expenses and are included as a component of marketing expenses. In addition, referral credits given to a referrer are classified as marketing expenses. Transaction Expenses Transaction expenses include fees paid to disbursement partners for paying funds to the recipient, provisions for transaction losses, fees paid to payment processors for funding transactions, bad debt expense, chargebacks, fraud prevention costs, and costs for compliance tools. See Note 14 for a rollforward of the Company’s reserve for transaction losses for the years ended December 31, 2021, 2020, and 2019. Reserve for Transaction Losses The Company is exposed to transaction losses including chargebacks, unauthorized credit card use, and fraud associated with customer transactions and other non-fraud related losses. The Company establishes reserves for such losses based on historical trends and any specific risks identified in processing customer transactions. This reserve is included in accrued expenses and other current liabilities on the consolidated balance sheets. The provision for transaction losses is included as a component of transaction expenses on the consolidated statements of operations and comprehensive loss. Customer Support and Operations Customer support and operations expenses consist primarily of personnel-related expenses associated with the Company’s customer support and operations organization, including salaries, benefits, and stock-based compensation, as well as third-party costs for customer support services, and travel and related office expenses. This includes the Company’s customer service teams which directly support the Company’s customers, consisting of online support and call centers, and other costs incurred to support the Company’s customers, including related telephony costs to support these teams, customer protection and risk teams, and investments in tools to effectively service the Company’s customers, and increased customer self-service capabilities. Customer support and operations expenses also include corporate communication costs and professional services fees. Marketing Marketing expenses consist primarily of advertising costs used to attract new customers, including branding-related expenses. Marketing expenses also include personnel-related expenses associated with the Company’s marketing organization, including salaries, benefits, and stock-based compensation, promotions, costs for software subscription services dedicated for use by the Company’s marketing organization, and outside services contracted for marketing purposes. Advertising Expense Advertising expenses are charged to operations as incurred and are included as a component of marketing expenses. As noted under “Sales Incentives,” above, advertising expenses also include additional incentive costs that would have caused the customer level revenue to be negative. Advertising expenses totaled $102.9 million, $62.0 million and $33.0 million during the years ended December 31, 2021, 2020, and 2019, respectively, and are used primarily to attract new customers. Technology and Development Technology and development expenses consist primarily of personnel-related expenses for employees involved in the research, design, development and maintenance of both new and existing products and services, including salaries, benefits and stock-based compensation. Technology and development expenses also include professional services fees and costs for software subscription services dedicated for use by the Company’s technology and development teams. Technology and development costs are generally expensed as incurred and do not include software development costs which qualify for capitalization as internal-use software. The amortization of internal use-software costs which were capitalized in accordance with ASC 350-40, Intangibles - Goodwill and Other-Internal Use Software , are separately presented under the caption ‘depreciation and amortization’ in our consolidated statements of operations. General and Administrative General and administrative expenses consist primarily of personnel-related expenses for the Company’s finance, legal, human resources, facilities, and administrative personnel, including salaries, benefits, and stock-based compensation. General and administrative expenses also include professional services fees, costs for software subscriptions, facilities costs, indirect taxes, and other corporate expenses. Capitalized Internal-Use Software Costs The Company accounts for software development costs incurred in connection with its internal-use software in accordance with ASC 350-40, Intangibles - Goodwill and Other-Internal Use Software . Costs incurred in the preliminary stages of development are expensed as incurred. Once an app has reached the development stage, internal and external costs, if direct and incremental, are capitalized until the software is substantially complete and ready for its intended use. Internal-use software is amortized on a straight-line basis over its estimated useful life, generally three years. Management evaluates the useful lives of these assets on an annual basis and tests for impairment whenever events or changes in circumstances occur that could impact the recoverability of these assets. Capitalized Cloud Computing Arrangements The Company incurs costs to implement cloud computing arrangements that are hosted by a third-party vendor. The Company adopted this new standard prospectively during the fiscal year ended December 31, 2021. For cloud computing arrangements that meet the definition of a service contract, the Company capitalizes implementation costs incurred during the application development stage as a prepaid expense or an other non-current asset and amortizes the costs on a straight-line basis over the term of the associated hosting arrangement and recognized as an operating expense within the consolidated statements of operations. The classification of the expense is determined based on the nature of the hosting arrangement to which the implementation costs relate. Costs related to data conversion, training and other maintenance activities are expensed as incurred. Implementation costs for cloud computing arrangements that meet the definition of a software license are accounted for consistent with software developed or obtained for internal use as detailed further above. Segment and Geographic Information See Note 16 for information related to the Company’s segment reporting and geographic information. Net Loss Per Share Attributable to Common Stockholders Basic and diluted net loss per share attributable to common stockholders is computed using the two-class method required for participating securities. All series of the Company’s redeemable convertible preferred stock and early exercised stock options are considered to be participating securities because all holders are entitled to receive dividends on a pari passu basis in the event that a dividend is declared on the common stock. Under the two-class method, basic net loss per share is computed by dividing net loss adjusted to include deemed dividends on redeemable convertible preferred stock by the weighted-average number of common shares outstanding during the period. Diluted earnings per share is computed by dividing net income attributable to common shares by the weighted-average number of common shares determined for the basic earnings per share plus the dilutive effect of stock options, restricted stock units (“RSUs”), warrants and redeemable convertible preferred stock. As the Company had losses for the years ended December 31, 2021, 2020, and 2019 all potentially dilutive securities are anti-dilutive, and accordingly, basic net loss per share equaled diluted net loss per share. Stock-Based Compensation The Company grants equity awards under its equity incentive plans, as well as its employee stock purchase plan (the “ESPP,” as further defined in Note 10). The Company measures stock-based compensation expense for both stock options granted under its equity incentive plans, and purchase rights issued under its ESPP, by calculating the estimated fair value of each employee and nonemployee award at the grant date or modification date by applying the Black-Scholes option pricing model (the “model”). The model utilizes the estimated value of the Company’s underlying common stock at the measurement date, the expected or contractual term of the option, the expected stock price volatility, risk-free interest rate, and expected dividend yield of the common stock. Stock-based compensation expense is generally recognized on a straight-line basis over the requisite service period, which is typically the vesting period of the respective award; however, in some instances, the vesting percentages differ throughout the service period. Stock-based compensation for restricted stock units are measured based on the fair market value of the Company’s stock on the date of grant. In all instances, the amount of compensation cost recognized at any date is at least equal to the portion of the grant-date value of the award that is legally vested (i.e., the “floor” pursuant to ASC 718). Forfeitures are recognized in the period in which they occur. The Company calculates the expected term based on the average period the options are expected to remain outstanding using the simplified method, generally calculated as the midpoint of the requisite service period and the contractual term of the award. The Company bases its estimate of expected volatility on the historical volatility of comparable companies from a representative peer group selected based on industry, financial, and market capitalization data. The Company’s expected dividend yield is zero as it has not declared nor paid any dividends during the years ended December 31, 2021, 2020, and 2019 and does not currently expect to do so in the future. The risk-free interest rate used in the model is based on the implied yield currently available in the U.S. Treasury securities at maturity with an equivalent term. The Company’s 2011 and 2021 equity plans allow for early exercise of employee stock options whereby the option holder is allowed to exercise prior to vesting. The consideration received for an early exercise of an option is considered to be a deposit of the exercise price, and the related dollar amount is recorded as a liability and reflected in accrued expenses and other current liabilities in the consolidated balance sheets. This liability is reclassified to additional paid-in capital as the awards vest. Any unvested shares are subject to repurchase by the Company at their original exercise price. Income Taxes The Company accounts for income taxes under the asset and liability method, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the consolidated financial statements. Under this method, deferred tax assets and liabilities are determined on the basis of the differences between the consolidated financial statements and tax bases of assets and liabilities by using enacted tax rates in effect for the year in which the differences are expected to reverse. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in income in the period that includes the enactment date. The Company recognizes deferred tax assets to the extent that these assets are believed more likely than not to be realized. In making such a determination, all available positive and negative evidence is considered, including future reversals of existing taxable temporary differences, projected future taxable income, tax planning strategies, and results of recent operations. Tax benefits for uncertain tax positions are based upon management’s evaluation of the information available at the reporting date. We recognize and measure uncertain tax positions in accordance with GAAP, pursuant to which we only recognize the tax benefit from an uncertain tax position if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The benefit for positions meeting the recognition threshold is measured as the largest benefit more likely than not of being realized upon settlement with a taxing authority that has full knowledge of all relevant information. The Company’s policy is to recognize interest and penalties related to income taxes as a component of provision for income taxes. Recent Accounting Pronouncements Recently Adopted Accounting Pronouncements (“ASU”) In August 2018, the FASB issued ASU No. 2018-15, Intangibles - Goodwill and Other-Internal-Use Software (Subtopic 350-40),Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That is a Service Contract. Under existing GAAP, there is diversity in practice in accounting for the costs of implementing cloud computing arrangements (CCA) that are service contracts. The standard aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. The standard also requires the presentation of the amortization of the capitalized implementation costs in the same line item in the consolidated statements of comprehensive loss as the fees associated with the hosting arrangement. The new standard is effective for fiscal years beginning after December 15, 2020, and interim periods within fiscal years beginning after December 15, 2021 with early adoption permitted. This ASU was adopted on a prospective basis for the fiscal year ended December 31, 2021. The Company capitalized $1.1 million related to the implementation of cloud computing arrangements and recorded amortization expense of $0.2 million during the year ended December 31, 2021 as a result of the adoption of this ASU. Accounting Pronouncements Not Yet Adopted In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments- Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments . This ASU replaces the existing incurred loss impairment methodology that recognizes credit losses when a probable loss has been incurred with new methodology pursuant to which loss estimates are based upon lifetime expected credit losses. The amendments in this ASU require a financial asset that is measured at amortized cost to be presented at the net amount expected to be collected. The consolidated statement of operations would then reflect the measurement of credit losses for newly recognized financial assets as well as changes to the expected credit losses that have taken place during the reporting period. The change in allowance recognized as a result of adoption will occur through a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the ASU is adopted. The new standard is effective for fiscal years beginning after December 15, 2022, and interim periods within that fiscal year with early adoption permitted. The Company is currently assessing the impact of the guidance on its consolidated financial statements. In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes , which modifies ASC 740 to simplify the accounting for income taxes. The ASU’s amendments are based on changes that were suggested by stakeholders as part of the FASB’s simplification initiative (i.e., the Board’s effort to reduce the complexity of accounting standards while maintaining or enhancing the helpfulness of information provided to financial statement users). ASU 2019-12 removes certain exceptions related to the approach for intra period tax allocation, the methodology for calculating income taxes in an interim period and the recognition of deferred tax liabilities for outside basis differences. ASU 2019-12 also amends other aspects of the guidance to help simplify and promote consistent application of GAAP. The new standard is effective for fiscal years beginning after December 15, 2021, and interim periods within fiscal years beginning after December 15, 2022 with early adoption permitted. The Company is currently assessing the impact of the guidance on its consolidated financial statements. We expect to adopt this ASU on a prospective basis in the first quarter of 2022 and do not expect the adoption to have a significant impact on our financial statements. There are other new accounting pronouncements issued by the FASB that we have adopted or will adopt, as applicable. We do not believe any of these accounting pronouncements have had, or will have, a material impact on our consolidated financial statements or disclosures. |
Revenue
Revenue | 12 Months Ended |
Dec. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | Revenue The Company’s primary source of revenue is generated from its remittance business. Revenue is earned from transaction fees charged to customers and foreign exchange spreads between the foreign exchange rate offered to customers and the foreign exchange rate on the Company's currency purchases. Revenue is recognized when control of these services is transferred to the Company’s customers, which is the time the funds have been delivered to the intended recipient in an amount that reflects the consideration the Company expects to be entitled to in exchange for services provided. The Company accounts for revenue in accordance with Accounting Standards Codification (“ASC”) Revenue from Contracts with Customers (Topic 606), which includes the following steps: (1) identification of the contract with a customer; (2) identification of the performance obligations in the contract; (3) determination of the transaction price; (4) allocation of the transaction price to the performance obligations in the contract; and (5) recognition of revenue when, or as, the Company satisfies a performance obligation. Customers engage the Company to perform one integrated service — collect the customer’s money and deliver funds to the intended recipient in the currency requested. Payment is generally due from the customer upfront upon initiation of a transaction, when the customer simultaneously agrees to the Company’s terms and conditions. Revenue is derived from each transaction and varies based on the funding method chosen by the customer, the size of the transaction, the currency to be ultimately disbursed, the rate at which the currency was purchased, and the countries to which the funds are transferred. The Company’s contract with customers can be terminated by the customer without a termination penalty up until the time the funds have been delivered to the intended recipient. Therefore, the Company’s contracts are defined at the transaction level and do not extend beyond the service already provided. The Company’s service comprises a single performance obligation to complete transactions for the Company’s customers. Using compliance and risk assessment tools, the Company performs a transaction risk assessment on individual transactions to determine whether a transaction should be accepted. When the Company accepts a transaction and processes the designated payment method of the customer, the Company becomes obligated to its customer to complete the payment transaction, at which time a receivable is recorded, along with a corresponding customer liability. None of the Company’s contracts contain a significant financing component. The Company recognizes transaction revenue on a gross basis as it is the principal for fulfilling payment transactions. As the principal to the transaction, the Company controls the service of completing payments on its payment platform. The Company bears primary responsibility for the fulfillment of the payment service, is the merchant of record, contracts directly with its customers, controls the product specifications, and defines the value proposition of its services. The Company is also responsible for providing customer support. Further, the Company has full discretion over determining the fee charged to its customers, which is independent of the cost it incurs in instances where it may utilize payment processors or other financial institutions to perform services on its behalf. These fees paid to payment processors and other financial institutions are recognized as transaction expenses in the consolidated statements of operations. The Company does not have any capitalized contract acquisition costs. Deferred Revenue The deferred revenue balances from contracts with customers were as follows: Years Ended December 31, (in thousands) 2021 2020 2019 Deferred revenue, beginning of the period $ 1,105 $ 137 $ 96 Deferred revenue, end of the period 1,212 1,105 137 Change in deferred revenue during the period $ 107 $ 968 $ 41 Revenue recognized during the year ended December 31, 2021 from amounts included in deferred revenue at the beginning of the period was $0.3 million. Revenue recognized during the years ended December 31, 2020 and 2019 includes substantially all amounts included in deferred revenue at the beginning of each respective year. Deferred revenue represents amounts received from customers for which the performance obligations are not yet fulfilled. Deferred revenue for our remittance business is included within accrued expenses and other current liabilities on the consolidated balance sheets as the performance obligations are expected to be fulfilled within the next year. As of December 31, 2021, approximately $0.4 million of other deferred revenue is recorded within other non-current liabilities and relates to an upfront long-term incentive payment received from a customer that will be recognized over the next three years, in line with the underlying performance obligations to which it relates. Sales Incentives During the years ended December 31, 2021, 2020, and 2019, payments made to customers resulted in reductions to revenue of $18.1 million, $15.7 million, and $7.9 million, respectively, and charges to sales and marketing expense of $12.0 million, $9.8 million, and $6.1 million, respectively. |
Property and Equipment
Property and Equipment | 12 Months Ended |
Dec. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Property and Equipment Property and equipment, net consisted of the following: December 31, (in thousands) 2021 2020 Capitalized internal-use software $ 9,022 $ 6,170 Computer and office equipment 4,700 3,422 Furniture and fixtures 1,445 1,390 Leasehold improvements 7,188 6,609 22,355 17,591 Less: Accumulated depreciation and amortization (13,106) (7,916) Property and equipment, net $ 9,249 $ 9,675 Depreciation and amortization expense related to property and equipment was $5.3 million, $4.1 million and $2.7 million for the years ended December 31, 2021, 2020, and 2019, respectively Capitalized Internal-Use Software Costs There has been no impairment of previously capitalized costs during the years ended December 31, 2021, 2020, and 2019. The Company capitalized $2.9 million, $2.3 million and $2.2 million for internal-use software costs during the years ended December 31, 2021, 2020, and 2019, respectively. The Company capitalized $0.3 million of stock-based compensation costs to internal-use software for the year ended December 31, 2021, and $0.1 million for each of the years ended December 31, 2020 and 2019. The Company recorded amortization expense of $2.5 million, $1.6 million and $0.9 million for the years ended December 31, 2021, 2020, and 2019, respectively. Capitalized Cloud Computing Arrangements The Company capitalized $1.1 million related to the implementation of cloud computing arrangements and recorded amortization expense of $0.2 million during the year ended December 31, 2021. As of December 31, 2021, capitalized costs, net of accumulated amortization, were approximately $0.9 million, of which $0.4 million was recorded within prepaid expenses and other current assets and $0.5 million was recorded within other non-current assets in the Company's consolidated balance sheets. Amortization expense related to cloud computing arrangements for the year-ended December 31, 2021 was as follows: December 31, (in thousands) 2021 Technology and development $ 165 General and administrative 22 Total amortization $ 187 |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements There are no financial assets and liabilities that are measured at fair value as of December 31, 2021. The following table presents information about the Company’s financial assets and liabilities that are measured at fair value and indicates the fair value hierarchy of the valuation inputs used as of December 31, 2020: As of December 31, 2020 (in thousands) Level 1 Level 2 Level 3 Total Assets Restricted cash Certificates of deposit $ — $ 102 $ — $ 102 Total assets $ — $ 102 $ — $ 102 The carrying values of certain financial instruments, including disbursement prefunding, customer funds receivable, accounts payable, accrued expenses and other current liabilities, customer liabilities and borrowings approximate their respective fair values due to their relative short maturities and are excluded from the fair value table above. If these financial instruments were measured at fair value in the financial statements, they would be classified as Level 2. |
Debt
Debt | 12 Months Ended |
Dec. 31, 2021 | |
Debt Disclosure [Abstract] | |
Debt | Debt Secured Revolving Credit Facility New Revolving Credit Facility On September 13, 2021, Remitly Global, Inc. and Remitly, Inc., a wholly owned subsidiary of Remitly Global, Inc., as co-borrowers, entered into a credit agreement (the “New Revolving Credit Facility”) with certain lenders and JPMorgan Chase Bank, N.A. acting as administrative agent and collateral agent, that provides for revolving commitments of $250.0 million (including a $60.0 million letter of credit sub-facility) and terminated its then-existing 2020 Credit Agreement (as defined below). Proceeds under the New Revolving Credit Facility are available for working capital and general corporate purposes. As part of the refinancing, the Company performed a debt modification analysis, utilizing the borrowing capacity test within ASC 470-50, Debt — Modification and Extinguishment , on a lender-by-lender basis, resulting in the capitalization of $1.4 million of new debt issuance costs incurred in connection with the New Revolving Credit Facility, which were fully paid as of December 31, 2021. Such amounts were capitalized and recorded within other long-term assets, net in the consolidated balance sheet, and will be amortized to interest expense over the term of the New Revolving Credit Facility. The Company previously had $0.5 million of unamortized debt issuance costs associated with its existing Revolving Credit Facility. As a result of the debt modification analysis, the Company will continue to amortize $0.4 million of unamortized debt issuance costs over the term of the New Revolving Credit Facility. The remaining $0.1 million was expensed as a debt extinguishment cost within interest expense in the consolidated statement of operations during the year ended December 31, 2021. The New Revolving Credit Facility was used to refinance its existing 2020 Credit Agreement. The New Revolving Credit Facility has a maturity date of September 13, 2026. Borrowings under the New Revolving Credit Facility accrue interest at a floating rate per annum equal to, at the Company’s option, (1) the Alternate Base Rate (defined in the New Revolving Credit Facility as the rate per annum equal to the highest of (a) the Prime Rate in effect on such day, (b) the NYFRB Rate in effect for such day plus 0.50% and (c) the Adjusted LIBO Rate plus 1.00%, subject to a floor of 1.00% plus 0.50% or (2) the Adjusted LIBO Rate (subject to a floor of 0.00%) plus 1.50%. Such interest is payable (a) with respect to Alternate Base Rate loans, the last day of each March, June, September and December and (b) with respect to Adjusted LIBO Rate loans, at the end of each applicable interest period, but in no event less frequently than every three months. In addition, an unused commitment fee, which accrues at a rate per annum equal to 0.25% of the unused portion of the revolving commitments, is payable on the last day of each March, June, September and December. The New Revolving Credit Facility contains customary conditions to borrowing, events of default and covenants, including covenants that restrict the ability to dispose of assets, merge with other entities, incur indebtedness, grant liens, pay dividends or make other distributions to holders of its capital stock, make investments, enter into restrictive agreements or engage in transactions with affiliates. As of December 31, 2021, financial covenants in the New Revolving Credit Facility include (1) a requirement to maintain a minimum Adjusted Quick Ratio of 1.50:1.00, which is tested quarterly and (2) a requirement to maintain a minimum Liquidity of $100.0 million, which is tested quarterly. The Company was in compliance with all financial covenants under the New Revolving Credit Facility as of December 31, 2021. The obligations under the New Revolving Credit Facility are guaranteed by the material domestic subsidiaries of Remitly Global, Inc., subject to customary exceptions, and are secured by substantially all of the assets of the borrowers and guarantors thereunder, subject to customary exceptions. Amounts of borrowings under the New Revolving Credit Facility may fluctuate depending upon transaction volumes and seasonality. As of December 31, 2021, the Company had no outstanding borrowings under the New Revolving Credit Facility and $18.9 million in issued, but undrawn, standby letters of credit. The Company had unused borrowing capacity of $231.1 million under the New Revolving Credit Facility as of December 31, 2021. 2020 Credit Agreement Since 2013, the Company had access to a variable rate credit facility. In June 2019, the Company refinanced into a new credit agreement, which was further refinanced in November 2020, as discussed below. In connection with the refinancing, the Company repaid the remaining $2.8 million on its then-outstanding term loan. In November 2020, Remitly Global, Inc. and Remitly, Inc., a wholly owned subsidiary of Remitly Global, Inc., as borrower, further modified its then-existing credit agreement (the “2020 Credit Agreement”). Following such modification, the 2020 Credit Agreement provided Remitly, Inc. with access up to $150.0 million in revolving credit facility borrowings (including a $30.0 million letter of credit sub-facility) with a maturity date of November 16, 2023. Borrowings under the 2020 Credit Agreement were subject to mandatory repayment within 20 business days in an amount necessary to reduce the borrowings, in the aggregate, to an amount less than the Company’s customer funds account maintained with the lender. Interest on borrowings under the 2020 Credit Agreement accrued at a floating rate per annum equal to (i) ABR (defined in the 2020 Credit Agreement as the rate per annum equal to the highest of (a) the Prime Rate in effect on such day, (b) 3.25% and (c) the Federal Funds Effective Rate in effect for such day plus 0.50% plus (ii) 1.0%. In addition, an unused revolving line facility fee accrued at a floating rate per annum equal to 0.40% of the unused portion of the line, payable monthly. As of December 31, 2020, the interest rate of the borrowings under the revolving credit facility was 4.25%. As of December 31, 2020, the Company had outstanding borrowings under the 2020 Credit Agreement of $80.0 million and $9.4 million in issued, but undrawn, standby letters of credit outstanding. The 2020 Credit Agreement contained customary conditions to borrowing, events of default and covenants, including covenants that restrict the Company’s ability to dispose of assets, merge with or acquire other entities, incur indebtedness, pay dividends, incur encumbrances, make distributions to holders of its capital stock, make investments or engage in transactions with affiliates. Defined events of default included the occurrence of a Material Adverse Effect (as defined in the 2020 Credit Agreement) on the business or financial condition of the Company. Financial covenants included (1) a requirement to maintain a minimum Adjusted Quick Ratio of 1.50:1.00, which was tested monthly and (2) a requirement to maintain minimum trailing twelve month Consolidated Adjusted EBITDA (as defined in the 2020 Credit Agreement), which was tested quarterly. The Company was in compliance with all financial covenants under the 2020 Credit Agreement as of December 31, 2020. |
Net Loss Per Common Share
Net Loss Per Common Share | 12 Months Ended |
Dec. 31, 2021 | |
Earnings Per Share [Abstract] | |
Net Loss Per Common Share | Net Loss Per Common Share Basic and diluted net loss per share attributable to common stockholders is computed using the two-class method required for participating securities. Prior to the automatic conversion of all of its redeemable convertible preferred stock outstanding into common stock upon the completion of the IPO, the Company considered all series of the Company’s redeemable convertible preferred stock and early exercised stock options to be participating securities, as the holders of such stock have the right to receive dividends on a pari passu basis in the event that a dividend is declared on the common stock. Upon completion of the IPO, all of the Company’s redeemable convertible preferred stock was converted to common stock. After the IPO, the Company’s early exercised stock options continue to be participating in nature. Under the two-class method, basic net loss per share is computed by dividing net loss adjusted to include deemed dividends on redeemable convertible preferred stock by the weighted-average number of common shares outstanding during the period. Diluted earnings per share is computed by dividing net income attributable to common shares by the weighted-average number of common shares determined for the basic earnings per share plus the dilutive effect of stock options, RSUs, common stock warrants and redeemable convertible preferred stock. As the Company reported a net loss, diluted net loss per share was the same as basic net loss per share because the effects of potentially dilutive items were anti-dilutive for all periods presented. The following table presents the calculation of basic and diluted net loss per share attributable to common stockholders for the periods indicated: Years Ended December 31, (in thousands, except share and per share amounts) 2021 2020 2019 Numerator: Net loss $ (38,756) $ (32,564) $ (51,392) Deemed dividend on redeemable convertible preferred stock — — (12,134) Net loss attributable to common stockholders $ (38,756) $ (32,564) $ (63,526) Denominator: Weighted-average shares used in computing net loss per share attributable to common stockholders: Basic and diluted 60,728,748 21,459,062 21,290,784 Net loss per share attributable to common stockholders: Basic and diluted $ (0.64) $ (1.52) $ (2.98) The following potentially dilutive securities were excluded from the computation of diluted net loss per share calculations for the periods presented because the impact of including them would have been anti-dilutive: Years Ended December 31, 2021 2020 2019 Redeemable convertible preferred stock — 127,082,605 117,788,521 Common stock warrants — 256,250 256,250 Stock options outstanding 23,386,942 21,034,424 19,045,751 RSUs outstanding (1) 3,496,611 437,369 — ESPP 735,282 — — Shares subject to repurchase 456,294 1,888,322 1,818,334 Total 28,075,129 150,698,970 138,908,856 (1) A portion of these RSUs were subject to a performance-based vesting condition until September 22, 2021. See Note 10 for details on these awards. Includes 124,026 RSUs which legally vested but were not yet issued as common stock as of December 31, 2021. |
Common Stock
Common Stock | 12 Months Ended |
Dec. 31, 2021 | |
Equity [Abstract] | |
Common Stock | Common Stock As of December 31, 2021, the Company has authorized 725,000,000 shares of common stock with a par value of $0.0001 per share. Each holder of a share of common stock is entitled to one vote for each share held at all meetings of stockholders and is entitled to receive dividends whenever funds are legally available and when declared by the Company’s board of directors. Through December 31, 2021 and December 31, 2020, no dividends have been declared or paid by the Company. Donation to Remitly Philanthropy Fund In July 2021, the Company’s board of directors approved the reservation of up to 1,819,609 shares of common stock (which was approximately 1.0% of the fully diluted capitalization as of June 30, 2021) that the Company may issue to or for the benefit of a 501(c)(3) nonprofit foundation or a similar charitable organization pursuant to the Company’s Pledge 1% commitment in equal installments over ten years. On September 10, 2021, the Company executed the stock donation agreement, pursuant to which it would issue the first installment of the Pledge 1% commitment to Remitly Philanthropy Fund, a donor advised fund that will be administered on its behalf by Rockefeller Philanthropy Advisors, Inc., on the day after consummation of the IPO. On September 28, 2021, the Company donated 181,961 shares of its common stock to Remitly Philanthropy Fund, pursuant to the stock donation agreement, and in connection with the Pledge 1% campaign, which publicly acknowledges the Company’s intent to give back and increase social impact, in order to sustainably fund a portion of its corporate social responsibility goals and further its mission to expand financial inclusion for immigrants. The Company recorded a charge of $6.9 million to general and administrative expense based on the closing price of its common stock as reported on the Nasdaq Global Select Market (the “NASDAQ”) on September 28, 2021. Warrants |
Redeemable Convertible Preferre
Redeemable Convertible Preferred Stock | 12 Months Ended |
Dec. 31, 2021 | |
Temporary Equity Disclosure [Abstract] | |
Redeemable Convertible Preferred Stock | Redeemable Convertible Preferred Stock Upon completion of the IPO, all shares of the Company’s redeemable convertible preferred stock outstanding, totaling 127,410,631, were automatically converted into an equivalent number of shares of common stock on a one-to-one basis and their carrying value of $390.7 million was reclassified into stockholders’ equity. As of December 31, 2021, there wer e no shares of redeemable convertible preferred stock issued and outstanding. In connection with the IPO, the Company’s amended and restated certificate of incorporation became effective, which authorized the issuance of 50,000,000 shares of undesignated preferred stock with a par value of $0.0001 per share with right and preferences, including voting rights, designated from time to time by the Company’s board of directors. The following table summarizes information regarding each series of redeemable convertible preferred stock outstanding as of December 31, 2020 (in thousands, except share and per share amounts) : Series Shares Authorized Shares Issued and Outstanding Issuance Price Per Share Carrying Amount Aggregate Liquidation Preference Series Seed 10,199,786 6,446,322 $ 0.27 $ 1,595 $ 1,741 Series Seed Prime 8,780,816 8,643,665 0.30 2,506 2,593 Series A 11,514,347 10,359,546 0.50 5,091 5,180 Series B 14,196,476 14,196,476 0.88 12,374 12,500 Series C 25,146,777 25,146,777 1.70 41,863 42,800 Series D 30,331,802 30,331,802 3.79 109,674 115,000 Series E 22,663,934 22,663,933 5.96 129,770 135,001 Series F 9,840,797 9,294,084 $ 9.15 84,834 85,000 Total 132,674,735 127,082,605 $ 387,707 $ 399,815 During the year ended December 31, 2020, the Company issued 9,294,084 shares of Series F redeemable convertible preferred stock at $9.1456 per share for proceeds totaling $85.0 million, net of issuance costs. During the year ended December 31, 2021, the Company issued 328,026 shares of Series F redeemable convertible stock at $9.1456 per share for proceeds totaling $3.0 million, net of issuance costs. The terms of Series Seed, Seed Prime, A, B, C, D, E and F redeemable convertible preferred stock are summarized below: Conversion Each share of preferred stock is convertible at the option of the holder into such number of common stock at a rate equal to the original issue price of the applicable series of preferred stock divided by the conversion price for the applicable series of preferred stock in effect at the time of the conversion. The conversion price for each share of preferred stock is initially equal to the applicable original issue price, such that the initial conversion rate is 1-for-1. The conversion price is subject to standard anti-dilution adjustments and adjustments for issuance of stock at a price per share less than the conversion price in effect for each series (Series Seed $0.2729 per share, Seed Prime $0.2961 per share, Series A $0.4976 per share, Series B $0.8805 per share, Series C $1.7032 per share, Series D $3.7914 per share, Series E is $5.9566, Series F is $9.1456 per share). Each share of redeemable convertible preferred stock is automatically convertible into common stock based on the conversion rate at such time immediately upon the earlier of (i) closing of a firm commitment underwritten public offering which results in gross cash proceeds of at least $100.0 million and a per share price of $9.1456 (as adjusted for stock splits, stock dividends, combinations, or other similar recapitalization), or (ii) vote or written consent of the holders of the Series C, Series D, and Series E redeemable convertible preferred stock. Liquidation Preference In the event of a liquidation, dissolution, or winding up of the Company or a deemed liquidation of the Company, before any payment shall be made to common stockholders, redeemable convertible preferred stock-holders shall be paid, on a pari passu basis amount all classes of redeemable convertible preferred stock, the greater of: (i) the original issue price per share for the redeemable convertible preferred stock plus any dividends declared but unpaid thereon, or (ii) the amount per share as would have been payable had the shares of redeemable convertible been converted to common stock immediately prior to such event. A deemed liquidation event includes (i) a merger or consolidation, (ii) a sale of all or substantially all of the assets of the Company, or (iii) a change in controlling ownership of the Company unless the holders of at least a majority of the outstanding shares of redeemable convertible preferred stock, voting together as a single class on as-converted basis, elect to not classify such an event a deemed liquidation event. Since a deemed liquidation event would constitute a redemption event outside of the Company’s controls, redeemable convertible preferred stock has been presented within the mezzanine section on the consolidated balance sheets. Redemption The convertible preferred stock is not mandatorily redeemable at any future certain date. Voting The holders of the Series Seed, Seed Prime, A, B, C, D, E and F redeemable convertible preferred stock are entitled to vote, together with the holders of common stock, on all matters presented to stockholders for a vote. Each holder of the share of redeemable convertible preferred stock is entitled to the number of votes equal to the number of shares of common stock into which each share of redeemable convertible preferred stock is convertible at the time of such vote. Dividends The holders of the Series Seed, Seed Prime, A, B, C, D, E and F preferred stock are entitled to receive, when and as declared by the Company’s board of directors and out of assets legally available, such dividends as may be declared from time to time by its board of directors. Any dividends shall be distributed among the holder of preferred stock and common stock pro rata based on the number of shares of common stock then held by each holder (assuming conversion of all such preferred stock into common stock). To date, no dividends have been declared or paid by the Company. Tender Offer In October 2019, the Company facilitated and consummated a tender offer (the “2019 Tender Offer”) in which the Company repurchased shares of common stock and redeemable convertible preferred stock from certain of the Company’s current employees, former employees, founders and investors. In connection with the 2019 Tender Offer, the Company repurchased and retired an aggregate of 2,295,603 shares of Series Seed, Series Seed Prime and Series A redeemable convertible preferred stock for an aggregate purchase price of $13.0 million. The excess of the amount paid over the carrying value of Series Seed, Series Seed Prime and Series A redeemable convertible preferred stock, totaling $12.1 million, was recorded as a deemed dividend. Of the total recorded as a deemed dividend, $6.1 million decreased additional paid-in capital, with the remaining $6.0 million recorded as an increase in accumulated deficit. In addition, the Company repurchased and retired 2,053,690 shares of common stock for an aggregate purchase price of $11.0 million. See Note 10 for details on this transaction. There were no such transactions during the years ended December 31, 2021 or 2020. |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Dec. 31, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation Equity Plans In 2011, the Company adopted the Remitly Global, Inc. 2011 Equity Incentive Plan (the “2011 Plan”), as amended, which provided for the issuance of up to 43,899,677 incentive stock options, nonqualified stock options, restricted common stock, and RSUs and stock appreciation rights to employees, directors, officers, and consultants of the Company. In September 2021, the Company adopted the Remitly Global, Inc. 2021 Equity Incentive Plan (the “2021 Plan”, and together with the 2011 Plan, the “Plan”) as a successor to the 2011 Plan. The 2021 Plan authorizes the issuance of incentive stock options, nonqualified stock options, restricted common stock, stock appreciation rights, RSUs, and performance and stock bonus awards. Pursuant to the 2021 Plan, incentive stock options may be granted only to Company employees. The Company may grant all other types of awards to its employees, directors, and consultants. The 2021 Plan is administered by the Company’s board of directors, which determines the terms of the grants, including exercise price, number of equity awards granted, and vesting schedule. The 2021 Plan provides for the issuance of up to 25,000,000 shares of common stock, plus any reserved shares not issued or subject to outstanding grants under the 2011 Plan, which was 552,736 on the effective date of the 2021 Plan, for a total of 25,552,736 shares reserved for issuance under the 2021 Plan. The number of shares reserved for issuance under the 2021 Plan will increase automatically on January 1 of each of 2022 through 2031 by the number of shares equal to 5% of the aggregate number of outstanding shares of all classes of common stock as of the immediately preceding December 31, or a lesser number as may be determined by the Company’s talent and compensation committee, or by the Company’s board of directors acting in place of the talent and compensation committee. In addition, in September 2021, the Company adopted the Remitly Global, Inc. 2021 Employee Stock Purchase Plan (the “2021 ESPP” or “ESPP”) to enable eligible employees to purchase shares of common stock with accumulated payroll deductions at a discount. The ESPP provides for the issuance of up to 3,500,000 shares of common stock. The number of shares reserved for issuance and sale under the ESPP will increase automatically on January 1 of each of 2022 through 2031 by the number of shares equal to 1% of the aggregate number of outstanding shares of all classes of common stock as of the immediately preceding December 31, or a lesser number as may be determined by the Company’s talent and compensation committee, or by the Company’s board of directors acting in place of the talent and compensation committee. Subject to stock splits, recapitalizations, or similar events, no more than 35,000,000 shares of common stock may be issued over the term of the ESPP. The ESPP is intended to qualify under Section 423 of the Code, provided that the administrator may adopt sub-plans under the ESPP designed to be outside of the scope of Section 423 for participants who are non-U.S. residents. As of December 31, 2021 and December 31, 2020, 23,599,005 and 206,529 equity awards remain available for issuance under the 2021 Plan and 2011 Plan, respectively. As of December 31, 2021, there have been no issuances of shares under the ESPP, therefore all 3,500,000 shares of common stock remain available for issuance. Stock Options Stock options granted under the Plan generally vest over a period from two years to four years from the vesting commencement date on a monthly basis with or without a one-year cliff or, for non-employees, ratably on a monthly basis over a shorter period, depending upon anticipated duration of services. Other vesting terms are determined by the Company’s board of directors. All options granted under the Plan are exercisable for up to ten years from the grant date, subject to vesting. In the event of termination of service, options will generally remain exercisable, to the extent vested, for three months following the termination of service. The following is a summary of the Company’s stock option activity during the year ended December 31, 2021: Stock Options (in thousands, except share and per share amounts) Number of Options Outstanding Weighted-Average Exercise Price Weighted-Average Remaining Contractual Life (Years) Aggregate Intrinsic Value (1) Balances as of January 1, 2021 21,034,424 $ 1.88 7.82 $ 64,604 Granted 8,219,753 7.26 Exercised (4,495,889) 1.85 72,208 Forfeited (1,371,346) 3.16 Balances as of December 31, 2021 23,386,942 3.70 7.66 395,676 Vested and exercisable as of December 31, 2021 10,200,154 1.77 6.38 192,296 Vested and expected to vest as of December 31, 2021 23,788,236 $ 3.69 7.66 $ 402,847 _________________ (1) The aggregate intrinsic value is calculated as the difference between the exercise price of the underlying stock options and the estimated fair value of the Company’s common stock. The fair value of each employee stock option granted during the years ended December 31, 2021, 2020, and 2019 was estimated on the date of grant using the Black-Scholes option pricing model with the following assumptions: Years Ended December 31, 2021 2020 2019 Risk-free interest rates 0.32% to 1.19% 0.30% to 1.47% 1.51% to 2.47% Expected term (in years) 3.5 to 6.8 years 5.0 to 6.6 years 5.0 to 10.0 years Volatility 37.8% to 50.5% 37.3% to 54.0% 53.8% to 54.0% Dividend rate — % — % — % Fair value of underlying common stock Prior to the completion of the IPO, the Company’s board of directors considered numerous objective and subjective factors to determine the fair value of the Company’s common stock at each meeting in which awards were approved. The factors considered included, but were not limited to: (i) the results of contemporaneous independent third-party valuations of the Company’s common stock; (ii) the prices, rights, preferences, and privileges of the Company’s redeemable convertible preferred stock relative to those of its common stock; (iii) the lack of marketability of the Company’s common stock; (iv) actual operating and financial results; (v) current business conditions and projections; (vi) the likelihood of achieving a liquidity event, such as an initial public offering or sale of the Company, given prevailing market conditions; and (vii) precedent transactions involving the Company’s shares. After the completion of the IPO, the fair value of the Company’s common stock is determined by the closing price, on the date of grant, of its common stock, which is traded on the NASDAQ. The weighted-average grant date fair value of options granted during the years ended December 31, 2021, 2020, and 2019 was $5.22, $1.10, and $1.23 respectively. The aggregate grant-date fair value of options vested for the years ended December 31, 2021, 2020, and 2019 was $7.3 million, $5.4 million, and $3.7 million, respectively. The intrinsic value of options exercised for the years ended December 31, 2021, 2020, and 2019 was $72.2 million, $2.4 million, and $3.0 million, respectively. Restricted Stock Units Prior to the IPO, the Company granted performance-based RSUs (“PRSUs”) to employees and directors that continued both service-based and performance-based vesting conditions. The service-based vesting condition for these awards is typically satisfied over four years with a cliff vesting period of one year and continued vesting quarterly thereafter. The performance-based vesting condition is satisfied on the earlier of (i) the effective date of a registration statement of the Company filed under the Securities Act for the sale of the Company’s common stock or (ii) immediately prior to the closing of a change in control of the Company. Both events were not deemed probable until consummated, and therefore, stock-based compensation expense related to these PRSUs remained unrecognized prior to the effectiveness of the IPO. Upon the effectiveness of the IPO, the performance-based vesting condition was satisfied, and therefore, the Company recognized cumulative stock-based compensation expense of $1.1 million, using the accelerated attribution method for the portion of the awards for which the service-based vesting condition has been fully or partially satisfied. The remaining grant-date fair value of these PRSUs will be recognized over the remaining requisite service period. Beginning in August 2021, the Company began granting RSUs to employees and directors with service-based vesting conditions. The service-based vesting condition for these awards is typically satisfied over four years with a cliff vesting period of one year and continued vesting quarterly thereafter. The grant-date fair value of these RSUs will be recognized over the requisite service period. Restricted stock unit activity, including PRSUs, during the year ended December 31, 2021 was as follows: Number of Shares Weighted-Average Grant-Date Fair Value Per Share Unvested at January 1, 2021 437,369 $ 3.54 Granted 3,112,492 27.16 Vested (124,026) 5.07 Cancelled/forfeited (53,250) 32.11 Unvested at December 31, 2021 3,372,585 24.83 The weighted-average grant date fair value of RSUs, including PRSUs, granted during the years ended December 31, 2021 and 2020 was $27.16 and $3.54, respectively. The aggregate grant-date fair value of RSUS, including PRSUs, vested for the years ended December 31, 2021 and 2020 was $0.6 million and zero, respectively. There were no RSUs granted or vested during the year ended December 31, 2019. Employee Stock Purchase Plan The ESPP provides for consecutive offering periods during which eligible employees can participate in the ESPP and be granted the right to purchase shares. The offering period that commenced on September 22, 2021 shall end on August 31, 2023 with the first purchase period ending on February 28, 2022, the second purchase period ending on August 31, 2022, the third purchase period ending on February 28, 2023, and the fourth purchase period ending on August 31, 2023. Thereafter, subsequent offering periods shall commence on each subsequent March 1 and September 1, with each offering period consisting of four six-month purchase periods, for a total of a 24-month offering period. No offering periods may last longer than 27 months. Eligible employees can contribute up to 15% of their eligible compensation, subject to limitation as provided for in the ESPP, and purchase the common stock at a purchase price per share equal to 85% of the lesser of the fair market value of the common stock on (i) the offering date, which is defined as the first business day of the offering period, or (ii) the purchase date, which is the final business day of the purchase period. The fair value of ESPP offerings was estimated at the date of each offering using the Black-Scholes option-pricing model with the following assumptions during the year ended December 31, 2021: Year Ended December 31, 2021 Risk-free interest rates 0.06% to 0.30% Expected term (in years) 0.4 to 1.9 years Volatility 37.7% to 56.0% Dividend rate — % The Company’s ESPP began in 2021, therefore no awards were granted under the ESPP during the year ended December 31, 2020. Stock-Based Compensation Expense Stock-based compensation expense for stock options, RSUs, PRSUs, and the ESPP, included in the consolidated statements of operations, net of amounts capitalized to internal-use software, as described in Note 4, were as follows: Years Ended December 31, (in thousands) 2021 2020 2019 Customer support and operations $ 153 $ 22 $ 25 Marketing 2,325 869 541 Technology and development 6,931 2,130 1,486 General and administrative 7,607 2,243 1,596 Total $ 17,016 $ 5,264 $ 3,648 As of December 31, 2021, the total unamortized compensation cost related to all non-vested equity awards, including options, RSUs, and PRSUs was $122.6 million, which will be amortized over a weighted-average remaining requisite service period of approximately 3.3 years. As of December 31, 2021, the total unrecognized compensation expense related to the ESPP was $3.9 million, which is expected to be amortized over the next 1.7 years. The Company did not record a material income tax benefit related to stock-based compensation expense and stock option exercises, during the years ended December 31, 2021, 2020, and 2019, since the Company currently maintains a full valuation allowance against its net deferred tax assets in the jurisdictions where material stock-compensation expense charges are incurred, and stock option exercises occurred. Tender Offer In connection with the 2019 Tender Offer, as discussed in Note 9, the Company repurchased and retired 2,053,690 shares of the Company’s common stock for an aggregate purchase price of $11.0 million. The amounts paid in excess of the fair value of the common shares repurchased from the Company’s employees and founders, totaling $4.0 million were recorded as compensation expense for the year ended December 31, 2019, and are in addition to the amounts included as stock-based compensation expense in the above table. The $4.0 million of excess fair value was recorded in the following line items in the consolidated statements of operations: $0.2 million in marketing, $2.0 million in technology and development, and $1.8 million in general and administrative. The remaining $7.0 million was recorded as a decrease to par value of common stock and an increase in accumulated deficit, as the additional paid-in capital balance at the time of the transaction was zero. There were no such transactions during the years ended December 31, 2021 or 2020. |
Related Party Arrangements
Related Party Arrangements | 12 Months Ended |
Dec. 31, 2021 | |
Related Party Transactions [Abstract] | |
Related Party Arrangements | Related Party ArrangementsThe Company had promissory note agreements with two executive employees in conjunction with their early exercise of stock options to purchase 1,800,000 shares of the Company’s common stock. The principal amount of the notes was $3.1 million, and interest accrued at 2.83% on the outstanding principal amount annually. The notes were secured by the shares that were exercised. Based on the non-recourse nature of these agreements, the agreements were accounted for as grants of options to purchase common stock. The fair value of the stock options, determined using the Black-Scholes option pricing model was being recognized over the requisite service period.The associated shares are legally outstanding and included in shares of common stock outstanding in the consolidated financial statements, but were historically excluded from the Company’s net loss per common share calculations, as these shares of common stock were considered unvested until the underlying promissory notes were repaid. On August 23, 2021, the promissory notes were paid in full, including all accrued interest. After repayment of the loan, these shares are now considered outstanding for purposes of the Company’s net loss per common share calculations to the extent the shares are vested. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The components of loss before provision for income taxes were as follows: Years Ended December 31, (in thousands) 2021 2020 2019 United States $ (46,241) $ (35,542) $ (52,685) Foreign 8,528 4,141 1,552 Loss before provision for income taxes $ (37,713) $ (31,401) $ (51,133) The components of the provision for income taxes were as follows: Years Ended December 31, (in thousands) 2021 2020 2019 Current tax benefit (expense) Federal $ — $ 2 $ — State (257) (132) (19) Foreign (1,650) (1,019) (240) Total current tax expense (1,907) (1,149) (259) Deferred tax benefit (expense) Federal — — — State — — — Foreign 864 (14) — Total deferred tax benefit (expense) 864 (14) — Provision for income taxes $ (1,043) $ (1,163) $ (259) A reconciliation at the applicable federal statutory rate to the Company’s effective income tax rate were as follows: Years Ended December 31, 2021 2020 2019 Federal income taxes at statutory rate 21.00 % 21.00 % 21.00 % State income tax, net of federal benefit 11.37 2.93 3.09 Increase in valuation allowance (66.51) (26.26) (25.27) Stock-based compensation 31.08 — — Other 0.29 (1.37) 0.67 Effective income tax rate (2.77) % (3.70) % (0.51) % As of December 31, 2021, the Company has U.S. net operating loss (“NOL”) carryforwards of $272.1 million and state NOL carryforwards of $123.9 million. Such NOL carryforwards will begin to expire between 2032 and 2041. NOL carryforwards are subject to possible limitation should a change in ownership of the Company occur, as defined by Internal Revenue Code Section 382. The tax effects of the temporary differences and carryforwards that give rise to deferred tax assets were as follows: As of December 31, (in thousands) 2021 2020 Deferred tax assets Net operating loss carryforwards $ 67,253 $ 45,531 Accrued expenses 2,561 1,328 Stock-based compensation 4,272 1,535 Operating lease liabilities 642 1,107 Other 1,865 738 Gross deferred tax assets 76,593 50,239 Deferred tax liabilities Fixed assets and intangible assets (112) (223) Operating lease right-of-use assets (485) (825) Other (848) — Gross deferred tax liabilities (1,445) (1,048) Valuation allowance (74,244) (49,159) Net deferred tax assets $ 904 $ 32 The Company has established a full valuation allowance against the U.S. net deferred tax assets, as it believes that these deferred tax assets do not meet the more likely than not threshold. The net change in the total valuation allowance was an increase of $25.1 million, $8.2 million, and $12.9 million for the years ended December 31, 2021, 2020, and 2019 respectively. The following represents the changes in our valuation allowance for the years ended December 31, 2021, 2020, and 2019, respectively: Years Ended December 31, (in thousands) 2021 2020 2019 Balance at the beginning of the period $ 49,159 $ 40,913 $ 27,994 Charged to net income 25,085 8,246 12,919 Balance at the end of the period $ 74,244 $ 49,159 $ 40,913 The Company files income tax returns in the U.S. federal jurisdiction, various state jurisdictions, and internationally. As of December 31, 2021 and 2020, there is no accrued interest or penalties associated with income taxes recorded in the consolidated financial statements. The 2012 through 2021 tax years remain open for examination by taxing authorities. The calculation of the Company’s tax obligations involves dealing with uncertainties in the application of complex tax laws and regulations. ASC 740, Income Taxes , provides that a tax benefit from an uncertain tax position may be recognized when it is more likely than not that the position will be sustained upon examination, including resolutions of any related appeals or litigation processes, on the basis of the technical merits. The Company has assessed its income tax positions and recorded tax benefits for all years subject to examination, based upon its evaluation of the facts, circumstances and information available at each period end. For those tax positions where the Company has determined there is a greater than 50% likelihood that a tax benefit will be sustained, the Company has recorded the largest amount of tax benefit that may potentially be realized upon ultimate settlement with a taxing authority that has full knowledge of all relevant information. For those income tax positions where it is determined there is less than 50% likelihood that a tax benefit will be sustained, no tax benefit has been recognized. The Company had no uncertain tax positions during the years ended December 31, 2021, 2020, and 2019. The Company recognizes interest and, if applicable, penalties for any uncertain tax positions. Interest and penalties are recorded as a component of income tax expense. In the years ended December 31, 2021 and 2020, the Company did not have any accrued interest or penalties associated with any unrecognized tax benefits. The Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”) was enacted by the United States on March 27, 2020. The CARES Act did not have a material impact on the Company’s provision for income taxes for the year ended December 31, 2021 or 2020. |
401(k) Defined Contribution Pla
401(k) Defined Contribution Plan | 12 Months Ended |
Dec. 31, 2021 | |
Retirement Benefits [Abstract] | |
401(k) Defined Contribution Plan | 401(k) Defined Contribution Plan The Company has a defined contribution savings plan under Section 401(k) of the Internal Revenue Code. This plan covers substantially all domestic employees who meet minimum age and service requirements and allows participants to defer a portion of their annual compensation on a pre-tax basis. The Company makes discretionary matching contributions that are funded in the following year. The Company matches 50% of the first 3% of compensation that a participant contributes to the 401(k) plan, up to a maximum of $1,000 per plan year. The Company contributed $0.2 million to the 401(k) plan for each of the years ended December 31, 2021 and 2020, respectively, and $0.1 million for the year ended December 31, 2019, which represents the current period contribution for the prior plan year. The Company may also make discretionary profit-sharing contributions. No profit-sharing contributions were made during the years ended December 31, 2021, 2020 or 2019. |
Commitment and Contingencies
Commitment and Contingencies | 12 Months Ended |
Dec. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Guarantees and Indemnification In the ordinary course of business to facilitate sales of its services, the Company has entered into agreements with, among others, suppliers, and partners that include guarantees or indemnity provisions. The Company also enters into indemnification agreements with its officers and directors, and the Company’s certificate of incorporation and bylaws include similar indemnification obligations to its officers and directors. To date, there have been no claims under any indemnification provisions, therefore no such amounts have been accrued as of December 31, 2021 and December 31, 2020. Litigation and Loss Contingencies Litigation From time to time, the Company may be a party to litigation and subject to claims incident to the ordinary course of business, including intellectual property claims, labor and employment claims, threatened claims, breach of contract claims, and other matters. The Company accrues estimates for resolution of legal and other contingencies when losses are probable and estimable. Although the results of litigation and claims are inherently unpredictable, the Company believes that there was not at least a reasonable possibility that it had incurred a material loss with respect to such potential loss contingencies, as of December 31, 2021 and December 31, 2020. Indirect taxes The Company is subject to indirect taxation in various states and foreign jurisdictions in which it conducts business. The Company continually evaluates those jurisdictions in which indirect tax obligations exist to determine whether a loss is probable, as defined under GAAP, and the amount can be estimated. Determination of whether a loss is probable, and an estimate can be made, is a complex undertaking and takes into account the judgment of management, third-party research, and the potential outcome of negotiation and interpretations by regulators and courts, among other information. Such assessments include consideration of management’s evaluation of domestic and international tax laws and regulations, and the extent to which they may apply to our business and industry. Our assessment of probability includes consideration of recent inquiries, potential self-disclosure, and applicability of tax rules driven by the growth in our business. As a result of this assessment, management has accrued an estimated liability of approximately $3.8 million as of December 31, 2021, reflecting the amount that the Company believes is probable and estimable. The estimated liability is recorded within accrued expenses and other current liabilities on the Company's consolidated balance sheet. Although the Company believes its indirect tax estimates and associated liabilities are reasonable, the final determination of indirect tax audits or settlements could be materially different than the amounts recorded, and such differences could be material. Reserve for Transaction Losses The table below summarizes the Company’s reserve for transaction losses for the years ended December 31, 2021, 2020, and 2019: Years Ended December 31, (in thousands) 2021 2020 2019 Beginning balance $ 3,250 $ 798 $ 497 Provisions for transaction losses 29,596 19,663 7,859 Losses incurred, net of recoveries (29,712) (17,211) (7,558) Ending balance $ 3,134 $ 3,250 $ 798 |
Accrued Expenses and Other Curr
Accrued Expenses and Other Current Liabilities | 12 Months Ended |
Dec. 31, 2021 | |
Payables and Accruals [Abstract] | |
Accrued Expenses and Other Current Liabilities | Accrued Expenses & Other Current Liabilities Accrued expenses and other current liabilities consisted of the following: December 31, (in thousands) 2021 2020 Trade settlement liability $ 18,924 $ 16,700 ESPP employee contributions 1,551 — Accrued transaction expense 12,639 6,399 Accrued marketing expense 10,788 4,883 Reserve for transaction losses 3,134 3,250 Accrued salaries and benefits 2,923 1,960 Other accrued expenses 16,724 6,550 Total $ 66,683 $ 39,742 |
Segment and Geographical Inform
Segment and Geographical Information | 12 Months Ended |
Dec. 31, 2021 | |
Segment Reporting [Abstract] | |
Segment and Geographical Information | Segment and Geographical Information The Company determines operating segments based on how its chief operating decision maker (“CODM”) manages the business, makes operating decisions around the allocation of resources, and evaluates operating performance. The Company’s CODM is its Chief Executive Officer, who reviews the Company’s operating results on a consolidated basis. The Company operates as one segment. Based on the information provided to and reviewed by the Company’s CODM, the Company believes that the nature, amount, timing, and uncertainty of its revenue and how it is affected by economic factors are most appropriately depicted through the Company’s primary geographical locations. Revenues recorded by the Company are substantially all from the Company’s single performance obligation which are earned from similar services for which the nature of associated fees and the related revenue recognition models are substantially the same. The following table presents the Company’s revenue disaggregated by primary geographical location: Years Ended December 31, (in thousands) 2021 2020 2019 United States $ 338,190 $ 199,011 $ 105,356 Canada 56,916 29,871 12,501 Rest of world 63,499 28,074 8,710 Total revenue $ 458,605 $ 256,956 $ 126,567 Revenue is attributed to the country in which the customer is located. The following table summarizes the Company’s long-lived assets based on geography, which consist of property and equipment, net and operating lease right-of-use assets: December 31, (in thousands) 2021 2020 United States $ 7,523 $ 8,633 United Kingdom 2,229 441 Philippines 1,928 2,795 Nicaragua 2,534 3,049 Rest of world 337 362 Total long-lived assets $ 14,551 $ 15,280 |
Leases
Leases | 12 Months Ended |
Dec. 31, 2021 | |
Leases [Abstract] | |
Leases | Leases The Company leases office space in all of its locations under non-cancelable operating leases with various expiration dates through 2024. Tenant improvement allowance received for the leases in place as of December 31, 2021 totaled $1.8 million, which were received in cash in a prior period. There were no new tenant improvement allowances received during the year ended December 31, 2021. The components of lease expense, lease term, and discount rate for operating leases were as follows: Years Ended December 31, 2021 2020 2019 Operating lease expense (in thousands) $ 3,824 $ 3,202 $ 2,594 Weighted-average remaining lease term (in years) 2.2 2.6 3.0 Weighted-average discount rate 5.0 % 5.8 % 6.2 % Supplemental cash flow information related to leases was as follows: Years Ended December 31, (in thousands) 2021 2020 2019 Cash payments, net of receipts, included in the measurement of operating lease liabilities – operating cash flows $ 3,538 $ 3,315 $ 2,927 The following table represents the maturity of lease liabilities as of December 31, 2021 (in thousands): Year Ending December 31, 2022 $ 3,501 2023 1,565 2024 1,375 2025 — 2026 and Thereafter — Total lease payments 6,441 Less: Imputed interest (294) Present value of operating lease liabilities $ 6,147 |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2021 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events Increase of Authorized Shares Reserved for Issuance under Equity Plan In January 2022, there was an increase in the shares reserved for issuance under the 2021 Plan, in accordance with the 5% automatic increase provision, effective January 1, 2022. In January 2022,there was an increase in the shares reserved for issuance under the 2021 ESPP Plan, in accordance with the 1% automatic increase provision, effective January 1, 2022. New Lease Agreements: |
Basis of Presentation and Sum_2
Basis of Presentation and Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation and Principles of Consolidation The consolidated financial statements include the accounts of Remitly Global, Inc. and its wholly-owned subsidiaries. All intercompany transactions and balances have been eliminated in consolidation. In the opinion of management, these consolidated financial statements reflect all adjustments, consisting only of normal recurring adjustments, which are necessary for a fair statement of the consolidated financial statements for all periods presented. |
Principles of Consolidation | Basis of Presentation and Principles of Consolidation The consolidated financial statements include the accounts of Remitly Global, Inc. and its wholly-owned subsidiaries. All intercompany transactions and balances have been eliminated in consolidation. In the opinion of management, these consolidated financial statements reflect all adjustments, consisting only of normal recurring adjustments, which are necessary for a fair statement of the consolidated financial statements for all periods presented. |
Use of Estimates | Use of Estimates The preparation of the accompanying consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported and disclosed in the consolidated financial statements and accompanying notes. These estimates and assumptions include, but are not limited to, revenue recognition including the treatment of sales incentive programs, reserves for transaction losses, stock-based compensation expense including the estimated fair value per share of common stock, the carrying value of operating lease right-of-use assets, the recoverability of deferred tax assets, and capitalization of software development costs. The Company bases its estimates on historical experience and on assumptions that management considers reasonable. Actual results could differ from these estimates and assumptions, and these differences could be material to the consolidated financial statements. |
Cash and Cash Equivalents | Cash and Cash Equivalents The Company holds its cash and cash equivalents with financial institutions throughout the world, which management assesses to be of high credit quality. The Company considers all highly liquid investments with original maturities of three months or less at the time of purchase to be cash equivalents, so long as the Company has legal title to such amounts held in these accounts. Amounts that are held in accounts for which the Company does not have legal title to are recorded separately in our consolidated balance sheets, typically as disbursement prefunding balances. Cash and cash equivalents consist of cash on hand and various deposit accounts. |
Restricted Cash | Restricted CashRestricted cash primarily consists of cash collateral that the Company maintains with various payment processors in connection with its contractual obligation. The Company has relationships with certain payment processors that are responsible for processing the Company’s incoming customer payments. These processors require the Company to maintain certain restricted cash balances as collateral throughout the term of the processor arrangement. Restricted cash has been classified as a non-current asset on the consolidated balance sheets as it is not expected to be released within one year of the balance sheet date. |
Disbursement Prefunding | Disbursement Prefunding The Company maintains relationships with disbursement partners in various countries. These partners are responsible for disbursing funds to recipients. The Company may maintain prefunding balances with these disbursement partners so that they are able to fulfill customer requests. The Company does not earn interest on these balances. The balances are not compensating balances and are not legally restricted. The Company is exposed to the risk of loss in the event the Company’s disbursement partners fail, for any reason, to disburse funds to recipients according to the Company’s instructions. Such reasons could include mistakes by the Company’s disbursement partners in processing payment instructions or failing to correctly classify and process error categories, or insolvency or fraud by the Company’s disbursement partners. The Company maintains a loss reserve for these accounts which is included in accrued expenses and other current liabilities within the consolidated balance sheets. However, historical losses for the disbursement funding accounts have been inconsequential. |
Customer Funds Receivable | Customer Funds Receivable When customers fund their transactions using credit cards or debit cards, there is a clearing period before the cash is received by the Company from the payment processors of usually one business day. Similarly, when customers provide bank information and authorization for the Company to receive funds via electronic funds transfer, the transactions are submitted via batch and received in cash usually in one to three business days. These card and electronic funds are treated as a receivable from the bank until the cash is received by the Company. The Company does not maintain a reserve as historical losses have not been material. |
Foreign Currency Translation | Foreign Currency Translation The functional currencies of the Company’s international subsidiaries in Canada, Australia, Ireland, United Kingdom, and Singapore are each country’s local currency. The functional currency of the Company’s international subsidiaries in Poland and Nicaragua is the U.S. dollar. The results of operations for the Company’s international subsidiaries, with functional currencies other than the U.S. dollar, are translated from the local currency into U.S. dollars using the average exchange rates during each period. All assets and liabilities are translated using exchange rates at the end of each period. All equity transactions and certain assets are translated using historical rates. The consolidated financial statements are presented in U.S. dollars. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The Company establishes the fair value of its certain assets and liabilities using the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities that are required to be recorded at fair value, the Company considers the principal or most advantageous market in which to transact and the market-based risk. The Company applies fair value accounting for all financial assets and liabilities that are recognized or disclosed at fair value in the consolidated financial statements on a recurring basis. The carrying values of cash equivalents, disbursement prefunding, customer funds receivable, prepaid expenses and other current assets, accounts payable, accrued expenses and other current liabilities, and customer liabilities approximate their respective fair values due to their relative short maturities. Fair value principles require disclosures regarding the manner in which fair value is determined for assets and liabilities and establishes a three-tiered fair value hierarchy into which these assets and liabilities must be grouped, based upon significant levels of inputs as follows: Level 1 Inputs are unadjusted quoted prices in active markets for identical assets or liabilities. Level 2 Inputs are quoted prices for similar assets and liabilities in active markets or inputs that are observable for the assets or liabilities, either directly or indirectly through market corroboration, for substantially the full term of the financial instruments. |
Concentration of Credit Risk | Concentration of Credit Risk Financial instruments that potentially expose the Company to concentrations of credit risk consist primarily of cash and cash equivalents, disbursement prefunding, restricted cash, and customer funds receivable. The Company maintains cash and cash equivalents and restricted cash balances that may exceed the insured limits by the Federal Deposit Insurance Corporation. In addition, the Company funds its international operations using accounts with institutions in the major countries where its subsidiaries operate. The Company also prefunds amounts which are held by its disbursement partners, which typically include India, Philippines and Mexico. |
Deferred Offering Costs | Deferred Offering Costs Prior to the IPO, deferred offering costs, which consist of direct incremental legal, accounting, and consulting fees relating to the IPO, were capitalized and included in other non-current assets on the consolidated balance sheets. Upon completion of the IPO in September 2021, the |
Property and Equipment, Net | Property and Equipment, Net Property and equipment is stated at cost, less accumulated depreciation and amortization. Depreciation and amortization are calculated using the straight-line method over the estimated useful lives of the assets as follows: Estimated Useful Lives Capitalized internal-use software 3 years Computer and office equipment 3 years Furniture and fixtures 5 years Leasehold improvements Lesser of useful life or remaining lease term |
Leases | Leases A lease is defined as a contract, or part of a contract, that conveys the right to control the use of identified property, plant or equipment for a period of time in exchange for consideration. The Company adopted ASU No . 2016-02 “Leases - Topic 842” (“ASC 842”) and all subsequent ASUs that modified ASC 842 on January 1, 2020 and elected to apply the guidance to the comparative period. The Company’s lease commitments consist primarily of real estate property under various non-cancellable operating leases that expire between 2021 and 2024. The majority of the leases contain renewal options and provisions for increases in rental rates based on a predetermined schedule or an agreed upon index. If, at lease inception, the Company considers the exercise of a renewal option to be reasonably certain, the Company will include the extended term in the calculation of the right-of-use asset and lease liability. The Company determines if an arrangement is or contains a lease at inception by evaluating various factors, including if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration and other facts and circumstances. Lease classification is determined at the lease commencement date. Operating leases are included in operating lease right-of-use (“ROU”) assets and operating lease liabilities on the consolidated balance sheets. ROU assets represent the Company’s right to use an underlying asset for the lease term, and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. The lease liability is recognized at commencement date based on the present value of lease payments over the lease term. The ROU asset is initially measured at cost, which is based on the lease liability adjusted for lease prepayments, plus any initial direct costs incurred less any lease incentives received. As the rate implicit in most of its leases is not readily determinable, the Company generally uses its incremental borrowing rate based on the estimated rate of interest for collateralized borrowing over a similar term of the lease payments at commencement date. The Company’s lease terms may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. The Company utilized certain practical expedients and policy elections available under the lease accounting standard. The Company has elected to combine lease and non-lease components as a single lease component for its real estate leases. The Company also elected not to recognize ROU assets and lease liabilities on its consolidated balance sheets for leases that have a lease term of 12 months or less. The Company recognizes lease payments associated with its short-term leases as an expense on a straight-line basis over the lease term. Lease expense for operating leases is recognized on a straight-line basis over the lease term, which is the non-cancelable term adjusted for any renewal and termination options that are considered reasonably certain. Operating leases are included in operating lease ROU assets, operating lease liabilities, and operating lease liabilities, non-current on the consolidated balance sheets. |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets The Company reviews its long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be fully recoverable. When such events occur, management determines whether there has been impairment by comparing the anticipated undiscounted future net cash flows to the carrying value of the asset. If impairment exists, the asset is written down to its estimated fair value. |
Customer Liabilities | Customer Liabilities The Company recognizes transactions processed from customers but not yet disbursed to recipients as customer liabilities on the accompanying consolidated balance sheets. Customer liabilities are typically funds in-transit and the duration is typically one to two days. |
Revenue Recognition and Sales Incentives | Sales Incentives The Company provides sales incentives to customers in a variety of forms, which includes promotions, discounts, and other sales incentives. Cash incentives given to customers are accounted for as reductions to revenue, up to the point where net historical cumulative revenue, at the customer level, is reduced to zero. Those additional incentive costs that would have caused the customer level revenue to be negative are classified as advertising expenses and are included as a component of marketing expenses. In addition, referral credits given to a referrer are classified as marketing expenses. The Company’s primary source of revenue is generated from its remittance business. Revenue is earned from transaction fees charged to customers and foreign exchange spreads between the foreign exchange rate offered to customers and the foreign exchange rate on the Company's currency purchases. Revenue is recognized when control of these services is transferred to the Company’s customers, which is the time the funds have been delivered to the intended recipient in an amount that reflects the consideration the Company expects to be entitled to in exchange for services provided. The Company accounts for revenue in accordance with Accounting Standards Codification (“ASC”) Revenue from Contracts with Customers (Topic 606), which includes the following steps: (1) identification of the contract with a customer; (2) identification of the performance obligations in the contract; (3) determination of the transaction price; (4) allocation of the transaction price to the performance obligations in the contract; and (5) recognition of revenue when, or as, the Company satisfies a performance obligation. Customers engage the Company to perform one integrated service — collect the customer’s money and deliver funds to the intended recipient in the currency requested. Payment is generally due from the customer upfront upon initiation of a transaction, when the customer simultaneously agrees to the Company’s terms and conditions. Revenue is derived from each transaction and varies based on the funding method chosen by the customer, the size of the transaction, the currency to be ultimately disbursed, the rate at which the currency was purchased, and the countries to which the funds are transferred. The Company’s contract with customers can be terminated by the customer without a termination penalty up until the time the funds have been delivered to the intended recipient. Therefore, the Company’s contracts are defined at the transaction level and do not extend beyond the service already provided. The Company’s service comprises a single performance obligation to complete transactions for the Company’s customers. Using compliance and risk assessment tools, the Company performs a transaction risk assessment on individual transactions to determine whether a transaction should be accepted. When the Company accepts a transaction and processes the designated payment method of the customer, the Company becomes obligated to its customer to complete the payment transaction, at which time a receivable is recorded, along with a corresponding customer liability. None of the Company’s contracts contain a significant financing component. The Company recognizes transaction revenue on a gross basis as it is the principal for fulfilling payment transactions. As the principal to the transaction, the Company controls the service of completing payments on its payment platform. The Company bears primary responsibility for the fulfillment of the payment service, is the merchant of record, contracts directly with its customers, controls the product specifications, and defines the value proposition of its services. The Company is also responsible for providing customer support. Further, the Company has full discretion over determining the fee charged to its customers, which is independent of the cost it incurs in instances where it may utilize payment processors or other financial institutions to perform services on its behalf. These fees paid to payment processors and other financial institutions are recognized as transaction expenses in the consolidated statements of operations. The Company does not have any capitalized contract acquisition costs. |
Transaction Expenses and Customer Support and Operations | Transaction Expenses Transaction expenses include fees paid to disbursement partners for paying funds to the recipient, provisions for transaction losses, fees paid to payment processors for funding transactions, bad debt expense, chargebacks, fraud prevention costs, and costs for compliance tools. Customer Support and Operations Customer support and operations expenses consist primarily of personnel-related expenses associated with the Company’s customer support and operations organization, including salaries, benefits, and stock-based compensation, as well as third-party costs for customer support services, and travel and related office expenses. This includes the Company’s customer service teams which directly support the Company’s customers, consisting of online support and call centers, and other costs incurred to support the Company’s customers, including related telephony costs to support these teams, customer protection and risk teams, and investments in tools to effectively service the Company’s customers, and increased customer self-service capabilities. Customer support and operations expenses also include corporate communication costs and professional services fees. |
Reserve for Transaction Losses | Reserve for Transaction Losses The Company is exposed to transaction losses including chargebacks, unauthorized credit card use, and fraud associated with customer transactions and other non-fraud related losses. The Company establishes reserves for such losses based on historical trends and any specific risks identified in processing customer transactions. This reserve is included in accrued expenses and other current liabilities on the consolidated balance sheets. The provision for transaction losses is included as a component of transaction expenses on the consolidated statements of operations and comprehensive loss. |
Marketing | Marketing Marketing expenses consist primarily of advertising costs used to attract new customers, including branding-related expenses. Marketing expenses also include personnel-related expenses associated with the Company’s marketing organization, including salaries, benefits, and stock-based compensation, promotions, costs for software subscription services dedicated for use by the Company’s marketing organization, and outside services contracted for marketing purposes. |
Advertising | Advertising ExpenseAdvertising expenses are charged to operations as incurred and are included as a component of marketing expenses. As noted under “Sales Incentives,” above, advertising expenses also include additional incentive costs that would have caused the customer level revenue to be negative. |
Technology and Development | Technology and Development Technology and development expenses consist primarily of personnel-related expenses for employees involved in the research, design, development and maintenance of both new and existing products and services, including salaries, benefits and stock-based compensation. Technology and development expenses also include professional services fees and costs for software subscription services dedicated for use by the Company’s technology and development teams. Technology and development costs are generally expensed as incurred and do not include software development costs which qualify for capitalization as internal-use software. The amortization of internal use-software costs which were capitalized in accordance with ASC 350-40, Intangibles - Goodwill and Other-Internal Use Software , are separately presented under the caption ‘depreciation and amortization’ in our consolidated statements of operations. |
General and Administrative | General and Administrative General and administrative expenses consist primarily of personnel-related expenses for the Company’s finance, legal, human resources, facilities, and administrative personnel, including salaries, benefits, and stock-based compensation. General and administrative expenses also include professional services fees, costs for software subscriptions, facilities costs, indirect taxes, and other corporate expenses. |
Capitalized Internal-Use Software Costs and Capitalized Cloud Computing Arrangements | Capitalized Internal-Use Software Costs The Company accounts for software development costs incurred in connection with its internal-use software in accordance with ASC 350-40, Intangibles - Goodwill and Other-Internal Use Software . Costs incurred in the preliminary stages of development are expensed as incurred. Once an app has reached the development stage, internal and external costs, if direct and incremental, are capitalized until the software is substantially complete and ready for its intended use. Internal-use software is amortized on a straight-line basis over its estimated useful life, generally three years. Management evaluates the useful lives of these assets on an annual basis and tests for impairment whenever events or changes in circumstances occur that could impact the recoverability of these assets. Capitalized Cloud Computing Arrangements The Company incurs costs to implement cloud computing arrangements that are hosted by a third-party vendor. The Company adopted this new standard prospectively during the fiscal year ended December 31, 2021. For cloud computing arrangements that meet the definition of a service contract, the Company capitalizes implementation costs incurred during the application development stage as a prepaid expense or an other non-current asset and amortizes the costs on a straight-line basis over the term of the associated hosting arrangement and recognized as an operating expense within the consolidated statements of operations. The classification of the expense is determined based on the nature of the hosting arrangement to which the implementation costs relate. Costs related to data conversion, training and other maintenance activities are expensed as incurred. Implementation costs for cloud computing arrangements that meet the definition of a software license are accounted for consistent with software developed or obtained for internal use as detailed further above. |
Segment and Geographic Information | Segment and Geographical Information The Company determines operating segments based on how its chief operating decision maker (“CODM”) manages the business, makes operating decisions around the allocation of resources, and evaluates operating performance. The Company’s CODM is its Chief Executive Officer, who reviews the Company’s operating results on a consolidated basis. The Company operates as one segment. Based on the information provided to and reviewed by the Company’s CODM, the Company believes that the nature, amount, timing, and uncertainty of its revenue and how it is affected by economic factors are most appropriately depicted through the Company’s primary geographical locations. Revenues recorded by the Company are substantially all from the Company’s single performance obligation which are earned from similar services for which the nature of associated fees and the related revenue recognition models are substantially the same. |
Net Loss Per Share Attributable to Common Stockholders | Net Loss Per Share Attributable to Common Stockholders Basic and diluted net loss per share attributable to common stockholders is computed using the two-class method required for participating securities. All series of the Company’s redeemable convertible preferred stock and early exercised stock options are considered to be participating securities because all holders are entitled to receive dividends on a pari passu basis in the event that a dividend is declared on the common stock. |
Stock-Based Compensation | Stock-Based Compensation The Company grants equity awards under its equity incentive plans, as well as its employee stock purchase plan (the “ESPP,” as further defined in Note 10). The Company measures stock-based compensation expense for both stock options granted under its equity incentive plans, and purchase rights issued under its ESPP, by calculating the estimated fair value of each employee and nonemployee award at the grant date or modification date by applying the Black-Scholes option pricing model (the “model”). The model utilizes the estimated value of the Company’s underlying common stock at the measurement date, the expected or contractual term of the option, the expected stock price volatility, risk-free interest rate, and expected dividend yield of the common stock. Stock-based compensation expense is generally recognized on a straight-line basis over the requisite service period, which is typically the vesting period of the respective award; however, in some instances, the vesting percentages differ throughout the service period. Stock-based compensation for restricted stock units are measured based on the fair market value of the Company’s stock on the date of grant. In all instances, the amount of compensation cost recognized at any date is at least equal to the portion of the grant-date value of the award that is legally vested (i.e., the “floor” pursuant to ASC 718). Forfeitures are recognized in the period in which they occur. The Company calculates the expected term based on the average period the options are expected to remain outstanding using the simplified method, generally calculated as the midpoint of the requisite service period and the contractual term of the award. The Company bases its estimate of expected volatility on the historical volatility of comparable companies from a representative peer group selected based on industry, financial, and market capitalization data. The Company’s expected dividend yield is zero as it has not declared nor paid any dividends during the years ended December 31, 2021, 2020, and 2019 and does not currently expect to do so in the future. The risk-free interest rate used in the model is based on the implied yield currently available in the U.S. Treasury securities at maturity with an equivalent term. |
Income Taxes | Income Taxes The Company accounts for income taxes under the asset and liability method, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the consolidated financial statements. Under this method, deferred tax assets and liabilities are determined on the basis of the differences between the consolidated financial statements and tax bases of assets and liabilities by using enacted tax rates in effect for the year in which the differences are expected to reverse. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in income in the period that includes the enactment date. The Company recognizes deferred tax assets to the extent that these assets are believed more likely than not to be realized. In making such a determination, all available positive and negative evidence is considered, including future reversals of existing taxable temporary differences, projected future taxable income, tax planning strategies, and results of recent operations. Tax benefits for uncertain tax positions are based upon management’s evaluation of the information available at the reporting date. We recognize and measure uncertain tax positions in accordance with GAAP, pursuant to which we only recognize the tax benefit from an uncertain tax position if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The benefit for positions meeting the recognition threshold is measured as the largest benefit more likely than not of being realized upon settlement with a taxing authority that has full knowledge of all relevant information. The Company’s policy is to recognize interest and penalties related to income taxes as a component of provision for income taxes. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Recently Adopted Accounting Pronouncements (“ASU”) In August 2018, the FASB issued ASU No. 2018-15, Intangibles - Goodwill and Other-Internal-Use Software (Subtopic 350-40),Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That is a Service Contract. Under existing GAAP, there is diversity in practice in accounting for the costs of implementing cloud computing arrangements (CCA) that are service contracts. The standard aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. The standard also requires the presentation of the amortization of the capitalized implementation costs in the same line item in the consolidated statements of comprehensive loss as the fees associated with the hosting arrangement. The new standard is effective for fiscal years beginning after December 15, 2020, and interim periods within fiscal years beginning after December 15, 2021 with early adoption permitted. This ASU was adopted on a prospective basis for the fiscal year ended December 31, 2021. The Company capitalized $1.1 million related to the implementation of cloud computing arrangements and recorded amortization expense of $0.2 million during the year ended December 31, 2021 as a result of the adoption of this ASU. Accounting Pronouncements Not Yet Adopted In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments- Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments . This ASU replaces the existing incurred loss impairment methodology that recognizes credit losses when a probable loss has been incurred with new methodology pursuant to which loss estimates are based upon lifetime expected credit losses. The amendments in this ASU require a financial asset that is measured at amortized cost to be presented at the net amount expected to be collected. The consolidated statement of operations would then reflect the measurement of credit losses for newly recognized financial assets as well as changes to the expected credit losses that have taken place during the reporting period. The change in allowance recognized as a result of adoption will occur through a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the ASU is adopted. The new standard is effective for fiscal years beginning after December 15, 2022, and interim periods within that fiscal year with early adoption permitted. The Company is currently assessing the impact of the guidance on its consolidated financial statements. In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes , which modifies ASC 740 to simplify the accounting for income taxes. The ASU’s amendments are based on changes that were suggested by stakeholders as part of the FASB’s simplification initiative (i.e., the Board’s effort to reduce the complexity of accounting standards while maintaining or enhancing the helpfulness of information provided to financial statement users). ASU 2019-12 removes certain exceptions related to the approach for intra period tax allocation, the methodology for calculating income taxes in an interim period and the recognition of deferred tax liabilities for outside basis differences. ASU 2019-12 also amends other aspects of the guidance to help simplify and promote consistent application of GAAP. The new standard is effective for fiscal years beginning after December 15, 2021, and interim periods within fiscal years beginning after December 15, 2022 with early adoption permitted. The Company is currently assessing the impact of the guidance on its consolidated financial statements. We expect to adopt this ASU on a prospective basis in the first quarter of 2022 and do not expect the adoption to have a significant impact on our financial statements. There are other new accounting pronouncements issued by the FASB that we have adopted or will adopt, as applicable. We do not believe any of these accounting pronouncements have had, or will have, a material impact on our consolidated financial statements or disclosures. |
Basis of Presentation and Sum_3
Basis of Presentation and Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Schedule of Property and Equipment | Depreciation and amortization are calculated using the straight-line method over the estimated useful lives of the assets as follows: Estimated Useful Lives Capitalized internal-use software 3 years Computer and office equipment 3 years Furniture and fixtures 5 years Leasehold improvements Lesser of useful life or remaining lease term Property and equipment, net consisted of the following: December 31, (in thousands) 2021 2020 Capitalized internal-use software $ 9,022 $ 6,170 Computer and office equipment 4,700 3,422 Furniture and fixtures 1,445 1,390 Leasehold improvements 7,188 6,609 22,355 17,591 Less: Accumulated depreciation and amortization (13,106) (7,916) Property and equipment, net $ 9,249 $ 9,675 |
Revenue (Tables)
Revenue (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Deferred Revenue | The deferred revenue balances from contracts with customers were as follows: Years Ended December 31, (in thousands) 2021 2020 2019 Deferred revenue, beginning of the period $ 1,105 $ 137 $ 96 Deferred revenue, end of the period 1,212 1,105 137 Change in deferred revenue during the period $ 107 $ 968 $ 41 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property and Equipment | Depreciation and amortization are calculated using the straight-line method over the estimated useful lives of the assets as follows: Estimated Useful Lives Capitalized internal-use software 3 years Computer and office equipment 3 years Furniture and fixtures 5 years Leasehold improvements Lesser of useful life or remaining lease term Property and equipment, net consisted of the following: December 31, (in thousands) 2021 2020 Capitalized internal-use software $ 9,022 $ 6,170 Computer and office equipment 4,700 3,422 Furniture and fixtures 1,445 1,390 Leasehold improvements 7,188 6,609 22,355 17,591 Less: Accumulated depreciation and amortization (13,106) (7,916) Property and equipment, net $ 9,249 $ 9,675 |
Schedule of Hosting Arrangements | Amortization expense related to cloud computing arrangements for the year-ended December 31, 2021 was as follows: December 31, (in thousands) 2021 Technology and development $ 165 General and administrative 22 Total amortization $ 187 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value Measurements | The following table presents information about the Company’s financial assets and liabilities that are measured at fair value and indicates the fair value hierarchy of the valuation inputs used as of December 31, 2020: As of December 31, 2020 (in thousands) Level 1 Level 2 Level 3 Total Assets Restricted cash Certificates of deposit $ — $ 102 $ — $ 102 Total assets $ — $ 102 $ — $ 102 |
Net Loss Per Common Share (Tabl
Net Loss Per Common Share (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Earnings Per Share [Abstract] | |
Schedule of Basic and Diluted Earnings Per Share | The following table presents the calculation of basic and diluted net loss per share attributable to common stockholders for the periods indicated: Years Ended December 31, (in thousands, except share and per share amounts) 2021 2020 2019 Numerator: Net loss $ (38,756) $ (32,564) $ (51,392) Deemed dividend on redeemable convertible preferred stock — — (12,134) Net loss attributable to common stockholders $ (38,756) $ (32,564) $ (63,526) Denominator: Weighted-average shares used in computing net loss per share attributable to common stockholders: Basic and diluted 60,728,748 21,459,062 21,290,784 Net loss per share attributable to common stockholders: Basic and diluted $ (0.64) $ (1.52) $ (2.98) |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share | The following potentially dilutive securities were excluded from the computation of diluted net loss per share calculations for the periods presented because the impact of including them would have been anti-dilutive: Years Ended December 31, 2021 2020 2019 Redeemable convertible preferred stock — 127,082,605 117,788,521 Common stock warrants — 256,250 256,250 Stock options outstanding 23,386,942 21,034,424 19,045,751 RSUs outstanding (1) 3,496,611 437,369 — ESPP 735,282 — — Shares subject to repurchase 456,294 1,888,322 1,818,334 Total 28,075,129 150,698,970 138,908,856 (1) A portion of these RSUs were subject to a performance-based vesting condition until September 22, 2021. See Note 10 for details on these awards. Includes 124,026 RSUs which legally vested but were not yet issued as common stock as of December 31, 2021. |
Redeemable Convertible Prefer_2
Redeemable Convertible Preferred Stock (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Temporary Equity Disclosure [Abstract] | |
Summary of Redeemable Convertible Preferred Stock | The following table summarizes information regarding each series of redeemable convertible preferred stock outstanding as of December 31, 2020 (in thousands, except share and per share amounts) : Series Shares Authorized Shares Issued and Outstanding Issuance Price Per Share Carrying Amount Aggregate Liquidation Preference Series Seed 10,199,786 6,446,322 $ 0.27 $ 1,595 $ 1,741 Series Seed Prime 8,780,816 8,643,665 0.30 2,506 2,593 Series A 11,514,347 10,359,546 0.50 5,091 5,180 Series B 14,196,476 14,196,476 0.88 12,374 12,500 Series C 25,146,777 25,146,777 1.70 41,863 42,800 Series D 30,331,802 30,331,802 3.79 109,674 115,000 Series E 22,663,934 22,663,933 5.96 129,770 135,001 Series F 9,840,797 9,294,084 $ 9.15 84,834 85,000 Total 132,674,735 127,082,605 $ 387,707 $ 399,815 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of Stock Option Activity | The following is a summary of the Company’s stock option activity during the year ended December 31, 2021: Stock Options (in thousands, except share and per share amounts) Number of Options Outstanding Weighted-Average Exercise Price Weighted-Average Remaining Contractual Life (Years) Aggregate Intrinsic Value (1) Balances as of January 1, 2021 21,034,424 $ 1.88 7.82 $ 64,604 Granted 8,219,753 7.26 Exercised (4,495,889) 1.85 72,208 Forfeited (1,371,346) 3.16 Balances as of December 31, 2021 23,386,942 3.70 7.66 395,676 Vested and exercisable as of December 31, 2021 10,200,154 1.77 6.38 192,296 Vested and expected to vest as of December 31, 2021 23,788,236 $ 3.69 7.66 $ 402,847 _________________ (1) The aggregate intrinsic value is calculated as the difference between the exercise price of the underlying stock options and the estimated fair value of the Company’s common stock. |
Schedule of Stock Option Valuation Assumptions | The fair value of each employee stock option granted during the years ended December 31, 2021, 2020, and 2019 was estimated on the date of grant using the Black-Scholes option pricing model with the following assumptions: Years Ended December 31, 2021 2020 2019 Risk-free interest rates 0.32% to 1.19% 0.30% to 1.47% 1.51% to 2.47% Expected term (in years) 3.5 to 6.8 years 5.0 to 6.6 years 5.0 to 10.0 years Volatility 37.8% to 50.5% 37.3% to 54.0% 53.8% to 54.0% Dividend rate — % — % — % |
Schedule of Restricted Stock Award Activity | Restricted stock unit activity, including PRSUs, during the year ended December 31, 2021 was as follows: Number of Shares Weighted-Average Grant-Date Fair Value Per Share Unvested at January 1, 2021 437,369 $ 3.54 Granted 3,112,492 27.16 Vested (124,026) 5.07 Cancelled/forfeited (53,250) 32.11 Unvested at December 31, 2021 3,372,585 24.83 |
Schedule of ESPP Valuation Assumptions | The fair value of ESPP offerings was estimated at the date of each offering using the Black-Scholes option-pricing model with the following assumptions during the year ended December 31, 2021: Year Ended December 31, 2021 Risk-free interest rates 0.06% to 0.30% Expected term (in years) 0.4 to 1.9 years Volatility 37.7% to 56.0% Dividend rate — % |
Schedule of Share-based Compensation Expense | Stock-based compensation expense for stock options, RSUs, PRSUs, and the ESPP, included in the consolidated statements of operations, net of amounts capitalized to internal-use software, as described in Note 4, were as follows: Years Ended December 31, (in thousands) 2021 2020 2019 Customer support and operations $ 153 $ 22 $ 25 Marketing 2,325 869 541 Technology and development 6,931 2,130 1,486 General and administrative 7,607 2,243 1,596 Total $ 17,016 $ 5,264 $ 3,648 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income (Loss) before Income Tax, Domestic and Foreign | The components of loss before provision for income taxes were as follows: Years Ended December 31, (in thousands) 2021 2020 2019 United States $ (46,241) $ (35,542) $ (52,685) Foreign 8,528 4,141 1,552 Loss before provision for income taxes $ (37,713) $ (31,401) $ (51,133) |
Schedule of Components of Provision for Income Taxes | The components of the provision for income taxes were as follows: Years Ended December 31, (in thousands) 2021 2020 2019 Current tax benefit (expense) Federal $ — $ 2 $ — State (257) (132) (19) Foreign (1,650) (1,019) (240) Total current tax expense (1,907) (1,149) (259) Deferred tax benefit (expense) Federal — — — State — — — Foreign 864 (14) — Total deferred tax benefit (expense) 864 (14) — Provision for income taxes $ (1,043) $ (1,163) $ (259) |
Schedule of Effective Income Tax Rate Reconciliation | A reconciliation at the applicable federal statutory rate to the Company’s effective income tax rate were as follows: Years Ended December 31, 2021 2020 2019 Federal income taxes at statutory rate 21.00 % 21.00 % 21.00 % State income tax, net of federal benefit 11.37 2.93 3.09 Increase in valuation allowance (66.51) (26.26) (25.27) Stock-based compensation 31.08 — — Other 0.29 (1.37) 0.67 Effective income tax rate (2.77) % (3.70) % (0.51) % |
Schedule of Deferred Tax Assets and Liabilities | The tax effects of the temporary differences and carryforwards that give rise to deferred tax assets were as follows: As of December 31, (in thousands) 2021 2020 Deferred tax assets Net operating loss carryforwards $ 67,253 $ 45,531 Accrued expenses 2,561 1,328 Stock-based compensation 4,272 1,535 Operating lease liabilities 642 1,107 Other 1,865 738 Gross deferred tax assets 76,593 50,239 Deferred tax liabilities Fixed assets and intangible assets (112) (223) Operating lease right-of-use assets (485) (825) Other (848) — Gross deferred tax liabilities (1,445) (1,048) Valuation allowance (74,244) (49,159) Net deferred tax assets $ 904 $ 32 |
Summary of Valuation Allowance | The following represents the changes in our valuation allowance for the years ended December 31, 2021, 2020, and 2019, respectively: Years Ended December 31, (in thousands) 2021 2020 2019 Balance at the beginning of the period $ 49,159 $ 40,913 $ 27,994 Charged to net income 25,085 8,246 12,919 Balance at the end of the period $ 74,244 $ 49,159 $ 40,913 |
Commitment and Contingencies (T
Commitment and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Reserve for Transaction Losses | The table below summarizes the Company’s reserve for transaction losses for the years ended December 31, 2021, 2020, and 2019: Years Ended December 31, (in thousands) 2021 2020 2019 Beginning balance $ 3,250 $ 798 $ 497 Provisions for transaction losses 29,596 19,663 7,859 Losses incurred, net of recoveries (29,712) (17,211) (7,558) Ending balance $ 3,134 $ 3,250 $ 798 |
Accrued Expenses and Other Cu_2
Accrued Expenses and Other Current Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Payables and Accruals [Abstract] | |
Schedule of accrued expenses and other current liabilities | Accrued expenses and other current liabilities consisted of the following: December 31, (in thousands) 2021 2020 Trade settlement liability $ 18,924 $ 16,700 ESPP employee contributions 1,551 — Accrued transaction expense 12,639 6,399 Accrued marketing expense 10,788 4,883 Reserve for transaction losses 3,134 3,250 Accrued salaries and benefits 2,923 1,960 Other accrued expenses 16,724 6,550 Total $ 66,683 $ 39,742 |
Segment and Geographical Info_2
Segment and Geographical Information (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Segment Reporting [Abstract] | |
Schedule of Revenue by Geographic Area | The following table presents the Company’s revenue disaggregated by primary geographical location: Years Ended December 31, (in thousands) 2021 2020 2019 United States $ 338,190 $ 199,011 $ 105,356 Canada 56,916 29,871 12,501 Rest of world 63,499 28,074 8,710 Total revenue $ 458,605 $ 256,956 $ 126,567 |
Schedule of Long-Lived Assets by Geographic Area | The following table summarizes the Company’s long-lived assets based on geography, which consist of property and equipment, net and operating lease right-of-use assets: December 31, (in thousands) 2021 2020 United States $ 7,523 $ 8,633 United Kingdom 2,229 441 Philippines 1,928 2,795 Nicaragua 2,534 3,049 Rest of world 337 362 Total long-lived assets $ 14,551 $ 15,280 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Leases [Abstract] | |
Schedule of Lease Costs and Supplemental Cash Flow Information | The components of lease expense, lease term, and discount rate for operating leases were as follows: Years Ended December 31, 2021 2020 2019 Operating lease expense (in thousands) $ 3,824 $ 3,202 $ 2,594 Weighted-average remaining lease term (in years) 2.2 2.6 3.0 Weighted-average discount rate 5.0 % 5.8 % 6.2 % Supplemental cash flow information related to leases was as follows: Years Ended December 31, (in thousands) 2021 2020 2019 Cash payments, net of receipts, included in the measurement of operating lease liabilities – operating cash flows $ 3,538 $ 3,315 $ 2,927 |
Schedule of Lease Liability Maturity | The following table represents the maturity of lease liabilities as of December 31, 2021 (in thousands): Year Ending December 31, 2022 $ 3,501 2023 1,565 2024 1,375 2025 — 2026 and Thereafter — Total lease payments 6,441 Less: Imputed interest (294) Present value of operating lease liabilities $ 6,147 |
Organization and Description _2
Organization and Description of Business (Details) $ / shares in Units, $ in Millions | 1 Months Ended | 12 Months Ended |
Sep. 30, 2021USD ($)$ / sharesshares | Dec. 31, 2021countryshares | |
Subsidiary, Sale of Stock [Line Items] | ||
Number of countries in which entity operates (over) | country | 150 | |
Consideration received, net | $ | $ 305.2 | |
Stock issuance costs | $ | $ 20.8 | |
Preferred stock reclassified into stockholders' equity (in shares) | 127,410,631 | 127,410,631 |
Conversion ratio | 1 | 1 |
IPO | ||
Subsidiary, Sale of Stock [Line Items] | ||
Shares issued and sold (in shares) | 7,000,000 | |
Share price (in dollars per share) | $ / shares | $ 43 | |
IPO - selling shareholders | ||
Subsidiary, Sale of Stock [Line Items] | ||
Shares issued and sold (in shares) | 5,162,777 | |
Share price (in dollars per share) | $ / shares | $ 43 | |
Private Placement | ||
Subsidiary, Sale of Stock [Line Items] | ||
Shares issued and sold (in shares) | 581,395 | |
Share price (in dollars per share) | $ / shares | $ 43 |
Basis of Presentation and Sum_4
Basis of Presentation and Summary of Significant Accounting Policies - Narrative (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | ||
Sep. 30, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Restricted cash | $ 51 | $ 1,381 | ||
Deferred offering costs reclassified to additional-paid-in capital | $ 4,300 | |||
Deferred offering costs payable | 0 | 0 | ||
Long-lived asset impairment charges | 0 | 0 | $ 0 | |
Advertising expense | 102,900 | $ 62,000 | $ 33,000 | |
Implementation cost capitalized, additions | 1,100 | |||
Implementation costs, amortization expense | $ 187 | |||
Capitalized internal-use software | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Estimated useful life | 3 years | |||
Adjustment | ASU 2018-15 | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Implementation cost capitalized, additions | $ 1,100 | |||
Implementation costs, amortization expense | $ 200 |
Basis of Presentation and Sum_5
Basis of Presentation and Summary of Significant Accounting Policies - Schedule of Property and Equipment (Details) | 12 Months Ended |
Dec. 31, 2021 | |
Capitalized internal-use software | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 3 years |
Computer and office equipment | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 3 years |
Furniture and fixtures | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 5 years |
Revenue - Schedule of Deferred
Revenue - Schedule of Deferred Revenue (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |||
Deferred revenue, beginning of the period | $ 1,105 | $ 137 | $ 96 |
Deferred revenue, end of the period | 1,212 | 1,105 | 137 |
Change in deferred revenue during the period | $ 107 | $ 968 | $ 41 |
Revenue - Narrative (Details)
Revenue - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Disaggregation of Revenue [Line Items] | |||
Revenue recognized, deferred revenue | $ 0.3 | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01 | |||
Disaggregation of Revenue [Line Items] | |||
Remaining performance obligation | $ 0.4 | ||
Remaining performance obligation, period | 3 years | ||
Revenue | |||
Disaggregation of Revenue [Line Items] | |||
Sales incentives | $ 18.1 | $ 15.7 | $ 7.9 |
Sales and marketing expense | |||
Disaggregation of Revenue [Line Items] | |||
Sales incentives | $ 12 | $ 9.8 | $ 6.1 |
Property and Equipment - Schedu
Property and Equipment - Schedule of Property and Equipment (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 22,355 | $ 17,591 |
Less: Accumulated depreciation and amortization | (13,106) | (7,916) |
Property and equipment, net | 9,249 | 9,675 |
Capitalized internal-use software | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 9,022 | 6,170 |
Computer and office equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 4,700 | 3,422 |
Furniture and fixtures | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 1,445 | 1,390 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 7,188 | $ 6,609 |
Property and Equipment - Narrat
Property and Equipment - Narrative (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Property, Plant and Equipment [Line Items] | |||
Depreciation and amortization | $ 5,300,000 | $ 4,100,000 | $ 2,700,000 |
Implementation cost capitalized, additions | 1,100,000 | ||
Implementation costs, amortization expense | 187,000 | ||
Capitalized cost, net | 900,000 | ||
Prepaid expenses and other current assets | |||
Property, Plant and Equipment [Line Items] | |||
Capitalized cost, net | 400,000 | ||
Other non-current assets | |||
Property, Plant and Equipment [Line Items] | |||
Capitalized cost, net | 500,000 | ||
Capitalized internal-use software | |||
Property, Plant and Equipment [Line Items] | |||
Depreciation and amortization | 2,500,000 | 1,600,000 | 900,000 |
Impairment of property and equipment | 0 | 0 | 0 |
Property and equipment capitalized | 2,900,000 | 2,300,000 | 2,200,000 |
Stock-based compensation capitalized | $ 300,000 | $ 100,000 | $ 100,000 |
Property and Equipment - Sche_2
Property and Equipment - Schedule of Hosting Arrangements (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2021USD ($) | |
Property, Plant and Equipment [Line Items] | |
Implementation costs, amortization expense | $ 187 |
Technology and development | |
Property, Plant and Equipment [Line Items] | |
Implementation costs, amortization expense | 165 |
General and administrative | |
Property, Plant and Equipment [Line Items] | |
Implementation costs, amortization expense | $ 22 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - Recurring - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 |
Assets | ||
Total assets | $ 0 | $ 102,000 |
Certificates of deposit | ||
Assets | ||
Restricted cash | 102,000 | |
Level 1 | ||
Assets | ||
Total assets | 0 | |
Level 1 | Certificates of deposit | ||
Assets | ||
Restricted cash | 0 | |
Level 2 | ||
Assets | ||
Total assets | 102,000 | |
Level 2 | Certificates of deposit | ||
Assets | ||
Restricted cash | 102,000 | |
Level 3 | ||
Assets | ||
Total assets | 0 | |
Level 3 | Certificates of deposit | ||
Assets | ||
Restricted cash | $ 0 |
Debt (Details)
Debt (Details) | Sep. 13, 2021USD ($) | Nov. 30, 2020USD ($)businessDay | Jun. 30, 2019USD ($) | Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Sep. 12, 2021USD ($) |
Debt Instrument [Line Items] | |||||||
Letters of credit outstanding | $ 18,900,000 | $ 9,400,000 | |||||
Repayments of long-term debt | 0 | 0 | $ 2,772,000 | ||||
Line of credit | Revolving credit facility | New Revolving Credit Facility | |||||||
Debt Instrument [Line Items] | |||||||
Maximum borrowing capacity | $ 250,000,000 | ||||||
Debt issuance costs, gross | $ 1,400,000 | ||||||
Debt issuance costs, net | $ 400,000 | ||||||
Unused commitment fee percentage | 0.25% | ||||||
Adjusted quick ratio | 1.50 | ||||||
Minimum liquidity | $ 100,000,000 | ||||||
Outstanding borrowings | 0 | ||||||
Remaining borrowing capacity | 231,100,000 | ||||||
Line of credit | Revolving credit facility | New Revolving Credit Facility | NYFRB Rate | |||||||
Debt Instrument [Line Items] | |||||||
Variable rate, base | 0.005% | ||||||
Line of credit | Revolving credit facility | New Revolving Credit Facility | Adjusted LIBOR, 1.00% Floor | |||||||
Debt Instrument [Line Items] | |||||||
Variable rate, base | 1.00% | ||||||
Floor rate | 1.00% | ||||||
Line of credit | Revolving credit facility | New Revolving Credit Facility | Base Rate | |||||||
Debt Instrument [Line Items] | |||||||
Variable rate, spread on variable rate | 0.005% | ||||||
Line of credit | Revolving credit facility | New Revolving Credit Facility | Adjusted LIBOR, 0.00% Floor | |||||||
Debt Instrument [Line Items] | |||||||
Floor rate | 0.00% | ||||||
Variable rate, spread on variable rate | 1.50% | ||||||
Line of credit | Revolving credit facility | Credit Agreement | |||||||
Debt Instrument [Line Items] | |||||||
Maximum borrowing capacity | $ 150,000,000 | ||||||
Debt issuance costs, net | $ 500,000 | ||||||
Write off of debt issuance cost | $ 100,000 | ||||||
Unused commitment fee percentage | 0.40% | ||||||
Outstanding borrowings | $ 80,000,000 | ||||||
Repayment terms, maximum days to repay | businessDay | 20 | ||||||
Base rate | 3.25% | ||||||
Effective interest rate | 4.25% | ||||||
Line of credit | Revolving credit facility | Credit Agreement | Fed Funds Effective Rate | |||||||
Debt Instrument [Line Items] | |||||||
Variable rate, base | 0.50% | ||||||
Variable rate, spread on variable rate | 1.00% | ||||||
Line of credit | Letter of credit | New Revolving Credit Facility | |||||||
Debt Instrument [Line Items] | |||||||
Maximum borrowing capacity | $ 60,000,000 | ||||||
Line of credit | Letter of credit | Credit Agreement | |||||||
Debt Instrument [Line Items] | |||||||
Maximum borrowing capacity | $ 30,000,000 | ||||||
Term loan | Credit Agreement | |||||||
Debt Instrument [Line Items] | |||||||
Repayments of long-term debt | $ 2,800,000 |
Net Loss Per Common Share - Sch
Net Loss Per Common Share - Schedule of Basic and Diluted Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 12 Months Ended | ||
Oct. 31, 2019 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Numerator: | ||||
Net loss | $ (38,756) | $ (32,564) | $ (51,392) | |
Deemed dividend on redeemable convertible preferred stock | $ (12,100) | 0 | 0 | (12,134) |
Net loss attributable to common stockholders | (38,756) | (32,564) | (63,526) | |
Net loss attributable to common stockholders | $ (38,756) | $ (32,564) | $ (63,526) | |
Denominator: | ||||
Weighted-average shares used in computing net loss per share attributable to common stockholders, basic (in shares) | 60,728,748 | 21,459,062 | 21,290,784 | |
Weighted-average shares used in computing net loss per share attributable to common stockholders, diluted (in shares) | 60,728,748 | 21,459,062 | 21,290,784 | |
Net loss per share attributable to common stockholders: | ||||
Basic (in dollars per share) | $ (0.64) | $ (1.52) | $ (2.98) | |
Diluted (in dollars per share) | $ (0.64) | $ (1.52) | $ (2.98) |
Net Loss Per Common Share - S_2
Net Loss Per Common Share - Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share (Details) - shares | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities excluded from computation (in shares) | 28,075,129 | 150,698,970 | 138,908,856 |
Restricted stock | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Vested (in shares) | 124,026 | 0 | |
Redeemable convertible preferred stock | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities excluded from computation (in shares) | 0 | 127,082,605 | 117,788,521 |
Common stock warrants | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities excluded from computation (in shares) | 0 | 256,250 | 256,250 |
Stock options outstanding | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities excluded from computation (in shares) | 23,386,942 | 21,034,424 | 19,045,751 |
RSUs outstanding | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities excluded from computation (in shares) | 3,496,611 | 437,369 | 0 |
ESPP | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities excluded from computation (in shares) | 735,282 | 0 | 0 |
Shares subject to repurchase | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities excluded from computation (in shares) | 456,294 | 1,888,322 | 1,818,334 |
Common Stock (Details)
Common Stock (Details) | Sep. 30, 2021shares | Sep. 28, 2021USD ($)shares | Jul. 31, 2021shares | Dec. 31, 2021USD ($)vote$ / sharesshares | Dec. 31, 2020USD ($)$ / sharesshares | Dec. 31, 2019USD ($) |
Class of Stock [Line Items] | ||||||
Common stock, authorized (in shares) | 725,000,000 | 190,000,000 | ||||
Common stock, par value (in dollars per share) | $ / shares | $ 0.0001 | $ 0.0001 | ||||
Voting rights, number of votes | vote | 1 | |||||
Dividends declared, paid and unpaid | $ | $ 0 | $ 0 | ||||
Donation of common stock | $ | $ 6,900,000 | $ 6,933,000 | $ 0 | $ 0 | ||
Warrant term | 10 years | |||||
Number of securities called by warrants (in shares) | 256,250 | |||||
Issuance of common stock upon exercise of warrants (in shares) | 254,014 | |||||
Warrants outstanding (in shares) | 0 | 256,250 | ||||
Minimum | ||||||
Class of Stock [Line Items] | ||||||
Warrant exercise price (in dollars per share) | $ / shares | $ 0.054 | |||||
Maximum | ||||||
Class of Stock [Line Items] | ||||||
Warrant exercise price (in dollars per share) | $ / shares | $ 0.64 | |||||
Pledge 1% | ||||||
Class of Stock [Line Items] | ||||||
Common stock, reserved (in shares) | 1,819,609 | |||||
Common stock, reserved, percent of fully-diluted capitalization | 1.00% | |||||
Common stock, pledged term | 10 years | |||||
Pledge 1% | Multifaceted social good program | ||||||
Class of Stock [Line Items] | ||||||
Stock donated (in shares) | 181,961,000 |
Redeemable Convertible Prefer_3
Redeemable Convertible Preferred Stock - Narrative (Details) $ / shares in Units, $ in Thousands | 1 Months Ended | 12 Months Ended | ||||
Sep. 30, 2021USD ($)$ / sharesshares | Oct. 31, 2019USD ($)shares | Dec. 31, 2021USD ($)$ / sharesshares | Dec. 31, 2020USD ($)$ / sharesshares | Dec. 31, 2019USD ($)shares | Dec. 31, 2018shares | |
Temporary Equity [Line Items] | ||||||
Preferred stock reclassified into stockholders' equity (in shares) | 127,410,631 | 127,410,631 | ||||
Conversion ratio | 1 | 1 | ||||
Preferred stock reclassified into stockholders' equity | $ | $ 390,700 | $ 390,687 | ||||
Preferred stock, issued (in shares) | 0 | 127,082,605 | ||||
Preferred stock, outstanding (in shares) | 0 | 127,082,605 | 117,788,521 | 97,420,191 | ||
Preferred stock, authorized (in shares) | 50,000,000 | 50,000,000 | 132,674,735 | |||
Preferred stock, par value (in dollars per share) | $ / shares | $ 0.0001 | $ 0.0001 | $ 0.0001 | |||
Issuance of convertible preferred stock (in shares) | 328,026 | 9,294,084 | 22,663,933 | |||
Proceeds from stock issuance | $ | $ 2,980 | $ 84,834 | $ 129,770 | |||
Automatic conversion of preferred stock, threshold gross proceeds | $ | $ 100,000 | |||||
Automatic conversion of preferred stock, stock price trigger (in dollars per share) | $ / shares | $ 9.1456 | |||||
Repurchase and retirement of preferred stock in connection with tender offer (in shares) | 2,295,603 | 2,295,603 | ||||
Repurchase and retirement of preferred stock, aggregate purchase price | $ | $ 13,000 | |||||
Deemed dividend on redeemable convertible preferred stock | $ | $ 12,100 | $ 0 | $ 0 | $ 12,134 | ||
Repurchase and retirement of common stock in connection with tender offer (in shares) | 2,053,690 | |||||
Repurchase and retirement of common stock, aggregate purchase price | $ | $ 11,000 | |||||
Additional Paid-in Capital | ||||||
Temporary Equity [Line Items] | ||||||
Deemed dividend on redeemable convertible preferred stock | $ | 6,100 | |||||
Accumulated Deficit | ||||||
Temporary Equity [Line Items] | ||||||
Deemed dividend on redeemable convertible preferred stock | $ | $ 6,000 | |||||
Series F | ||||||
Temporary Equity [Line Items] | ||||||
Preferred stock, issued (in shares) | 9,294,084 | |||||
Preferred stock, outstanding (in shares) | 9,294,084 | |||||
Preferred stock, authorized (in shares) | 9,840,797 | |||||
Issuance of convertible preferred stock (in shares) | 328,026 | 9,294,084 | ||||
Shares issued, price per share (in dollars per share) | $ / shares | $ 9.1456 | $ 9.1456 | ||||
Proceeds from stock issuance | $ | $ 3,000 | $ 85,000 | ||||
Conversion price (in dollars per share) | $ / shares | $ 9.1456 | |||||
Series Seed | ||||||
Temporary Equity [Line Items] | ||||||
Preferred stock, issued (in shares) | 6,446,322 | |||||
Preferred stock, outstanding (in shares) | 6,446,322 | |||||
Preferred stock, authorized (in shares) | 10,199,786 | |||||
Conversion price (in dollars per share) | $ / shares | 0.2729 | |||||
Series Seed Prime | ||||||
Temporary Equity [Line Items] | ||||||
Preferred stock, issued (in shares) | 8,643,665 | |||||
Preferred stock, outstanding (in shares) | 8,643,665 | |||||
Preferred stock, authorized (in shares) | 8,780,816 | |||||
Conversion price (in dollars per share) | $ / shares | 0.2961 | |||||
Series A | ||||||
Temporary Equity [Line Items] | ||||||
Preferred stock, issued (in shares) | 10,359,546 | |||||
Preferred stock, outstanding (in shares) | 10,359,546 | |||||
Preferred stock, authorized (in shares) | 11,514,347 | |||||
Conversion price (in dollars per share) | $ / shares | 0.4976 | |||||
Series B | ||||||
Temporary Equity [Line Items] | ||||||
Preferred stock, issued (in shares) | 14,196,476 | |||||
Preferred stock, outstanding (in shares) | 14,196,476 | |||||
Preferred stock, authorized (in shares) | 14,196,476 | |||||
Conversion price (in dollars per share) | $ / shares | 0.8805 | |||||
Series C | ||||||
Temporary Equity [Line Items] | ||||||
Preferred stock, issued (in shares) | 25,146,777 | |||||
Preferred stock, outstanding (in shares) | 25,146,777 | |||||
Preferred stock, authorized (in shares) | 25,146,777 | |||||
Conversion price (in dollars per share) | $ / shares | 1.7032 | |||||
Series D | ||||||
Temporary Equity [Line Items] | ||||||
Preferred stock, issued (in shares) | 30,331,802 | |||||
Preferred stock, outstanding (in shares) | 30,331,802 | |||||
Preferred stock, authorized (in shares) | 30,331,802 | |||||
Conversion price (in dollars per share) | $ / shares | 3.7914 | |||||
Series E | ||||||
Temporary Equity [Line Items] | ||||||
Preferred stock, issued (in shares) | 22,663,933 | |||||
Preferred stock, outstanding (in shares) | 22,663,933 | |||||
Preferred stock, authorized (in shares) | 22,663,934 | |||||
Conversion price (in dollars per share) | $ / shares | $ 5.9566 |
Redeemable Convertible Prefer_4
Redeemable Convertible Preferred Stock - Summary of Redeemable Convertible Preferred Stock (Details) - USD ($) | Dec. 31, 2021 | Sep. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Temporary Equity [Line Items] | |||||
Shares Authorized | 50,000,000 | 50,000,000 | 132,674,735 | ||
Shares Issued | 0 | 127,082,605 | |||
Shares Outstanding | 0 | 127,082,605 | 117,788,521 | 97,420,191 | |
Carrying Amount | $ 0 | $ 387,707,000 | $ 302,873,000 | $ 173,958,000 | |
Aggregate Liquidation Preference | $ 0 | $ 399,815,000 | |||
Series Seed | |||||
Temporary Equity [Line Items] | |||||
Shares Authorized | 10,199,786 | ||||
Shares Issued | 6,446,322 | ||||
Shares Outstanding | 6,446,322 | ||||
Issuance Price Per Share (in dollars per share) | $ 0.27 | ||||
Carrying Amount | $ 1,595,000 | ||||
Aggregate Liquidation Preference | $ 1,741,000 | ||||
Series Seed Prime | |||||
Temporary Equity [Line Items] | |||||
Shares Authorized | 8,780,816 | ||||
Shares Issued | 8,643,665 | ||||
Shares Outstanding | 8,643,665 | ||||
Issuance Price Per Share (in dollars per share) | $ 0.30 | ||||
Carrying Amount | $ 2,506,000 | ||||
Aggregate Liquidation Preference | $ 2,593,000 | ||||
Series A | |||||
Temporary Equity [Line Items] | |||||
Shares Authorized | 11,514,347 | ||||
Shares Issued | 10,359,546 | ||||
Shares Outstanding | 10,359,546 | ||||
Issuance Price Per Share (in dollars per share) | $ 0.50 | ||||
Carrying Amount | $ 5,091,000 | ||||
Aggregate Liquidation Preference | $ 5,180,000 | ||||
Series B | |||||
Temporary Equity [Line Items] | |||||
Shares Authorized | 14,196,476 | ||||
Shares Issued | 14,196,476 | ||||
Shares Outstanding | 14,196,476 | ||||
Issuance Price Per Share (in dollars per share) | $ 0.88 | ||||
Carrying Amount | $ 12,374,000 | ||||
Aggregate Liquidation Preference | $ 12,500,000 | ||||
Series C | |||||
Temporary Equity [Line Items] | |||||
Shares Authorized | 25,146,777 | ||||
Shares Issued | 25,146,777 | ||||
Shares Outstanding | 25,146,777 | ||||
Issuance Price Per Share (in dollars per share) | $ 1.70 | ||||
Carrying Amount | $ 41,863,000 | ||||
Aggregate Liquidation Preference | $ 42,800,000 | ||||
Series D | |||||
Temporary Equity [Line Items] | |||||
Shares Authorized | 30,331,802 | ||||
Shares Issued | 30,331,802 | ||||
Shares Outstanding | 30,331,802 | ||||
Issuance Price Per Share (in dollars per share) | $ 3.79 | ||||
Carrying Amount | $ 109,674,000 | ||||
Aggregate Liquidation Preference | $ 115,000,000 | ||||
Series E | |||||
Temporary Equity [Line Items] | |||||
Shares Authorized | 22,663,934 | ||||
Shares Issued | 22,663,933 | ||||
Shares Outstanding | 22,663,933 | ||||
Issuance Price Per Share (in dollars per share) | $ 5.96 | ||||
Carrying Amount | $ 129,770,000 | ||||
Aggregate Liquidation Preference | $ 135,001,000 | ||||
Series F | |||||
Temporary Equity [Line Items] | |||||
Shares Authorized | 9,840,797 | ||||
Shares Issued | 9,294,084 | ||||
Shares Outstanding | 9,294,084 | ||||
Issuance Price Per Share (in dollars per share) | $ 9.15 | ||||
Carrying Amount | $ 84,834,000 | ||||
Aggregate Liquidation Preference | $ 85,000,000 |
Stock-Based Compensation - Narr
Stock-Based Compensation - Narrative (Details) | 1 Months Ended | 12 Months Ended | ||||
Sep. 30, 2021USD ($)shares | Oct. 31, 2019USD ($)shares | Dec. 31, 2021USD ($)period$ / sharesshares | Dec. 31, 2020USD ($)$ / sharesshares | Dec. 31, 2019USD ($)$ / sharesshares | Dec. 31, 2011shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Weighted-average grant date fair value, options granted (in dollars per share) | $ / shares | $ 5.22 | $ 1.10 | $ 1.23 | |||
Aggregate grant-date fair value, options | $ 7,300,000 | $ 5,400,000 | $ 3,700,000 | |||
Intrinsic value of options exercised | 72,208,000 | 2,400,000 | 3,000,000 | |||
Share-based compensation expense, accelerated cost | 4,000,000 | |||||
Tax benefit, stock-based compensation expense | 0 | 0 | 0 | |||
Tax benefit, exercise of stock-based awards | $ 0 | $ 0 | $ 0 | |||
Repurchase and retirement of common stock in connection with tender offer (in shares) | shares | 2,053,690 | |||||
Repurchase and retirement of common stock, aggregate purchase price | $ 11,000,000 | |||||
Common Stock | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Repurchase and retirement of common stock in connection with tender offer (in shares) | shares | 2,053,690 | |||||
Repurchase and retirement of common stock, aggregate purchase price, equity impact | (7,000,000) | |||||
Accumulated Deficit | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Repurchase and retirement of common stock, aggregate purchase price, equity impact | 7,000,000 | |||||
Additional Paid-in Capital | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Repurchase and retirement of common stock, aggregate purchase price, equity impact | $ 0 | |||||
Marketing | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share-based compensation expense, accelerated cost | $ 200,000 | |||||
Technology and development | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share-based compensation expense, accelerated cost | 2,000,000 | |||||
General and administrative | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share-based compensation expense, accelerated cost | $ 1,800,000 | |||||
Equity Plan | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of shares authorized | shares | 43,899,677 | |||||
2021 Plan | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of shares authorized | shares | 25,000,000 | |||||
Number of additional shares authorized | shares | 552,736 | |||||
Common stock, reserved (in shares) | shares | 25,552,736 | 23,599,005 | 206,529 | |||
Common stock reserved for issuance, annual increase percentage | 5.00% | |||||
ESPP | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of purchase periods | period | 4 | |||||
Purchase period | 6 months | |||||
Consecutive offering period | 24 months | |||||
Maximum employee contribution rate | 15.00% | |||||
ESPP purchase price of common stock, percent of market price | 85.00% | |||||
Granted (in shares) | shares | 0 | |||||
Unamortized compensation cost | $ 3,900,000 | |||||
Unamortized compensation cost, recognition period | 1 year 8 months 12 days | |||||
ESPP | Maximum | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Consecutive offering period | 27 months | |||||
ESPP | 2021 ESPP | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of shares authorized | shares | 3,500,000 | |||||
Common stock, reserved (in shares) | shares | 3,500,000 | |||||
Common stock reserved for issuance, annual increase percentage | 1.00% | |||||
Maximum number of shares available over award term | shares | 35,000,000 | |||||
Number of shares issued | shares | 0 | |||||
Stock options | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Cliff vesting period | 1 year | |||||
Exercisable period | 10 years | |||||
Exercisable period, termination of service | 3 months | |||||
Stock options | Minimum | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Vesting period | 2 years | |||||
Stock options | Maximum | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Vesting period | 4 years | |||||
Performance sares | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Vesting period | 4 years | |||||
Cliff vesting period | 1 year | |||||
Share-based compensation expense, accelerated cost | $ 1,100,000 | |||||
Restricted stock | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Weighted-average grant date fair value, granted (in dollars per share) | $ / shares | $ 27.16 | $ 3.54 | ||||
Weighted-average aggregate grant date fair value, vested | $ 600,000 | $ 0 | ||||
Vested (in shares) | shares | 124,026 | 0 | ||||
Granted (in shares) | shares | 3,112,492 | 0 | ||||
Unamortized compensation cost | $ 122,600,000 | |||||
Unamortized compensation cost, recognition period | 3 years 3 months 18 days |
Stock-Based Compensation - Sche
Stock-Based Compensation - Schedule of Stock Option Activity (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Number of Options Outstanding | |||
Beginning balance (in shares) | 21,034,424 | ||
Granted (in shares) | 8,219,753 | ||
Exercised (in shares) | (4,495,889) | ||
Forfeited (in shares) | (1,371,346) | ||
Ending balance (in shares) | 23,386,942 | 21,034,424 | |
Vested and exercisable (in shares) | 10,200,154 | ||
Vested and expected to vest (in shares) | 23,788,236 | ||
Weighted-Average Exercise Price | |||
Beginning balance (in dollars per share) | $ 1.88 | ||
Granted (in dollars per share) | 7.26 | ||
Exercised (in dollars per share) | 1.85 | ||
Forfeited (in dollars per share) | 3.16 | ||
Ending balance (in dollars per share) | 3.70 | $ 1.88 | |
Vested and exercisable (in dollars per share) | 1.77 | ||
Vested and expected to vest (in dollars per share) | $ 3.69 | ||
Weighted-Average Remaining Contractual Life (Years) | |||
Outstanding | 7 years 7 months 28 days | 7 years 9 months 25 days | |
Vested and exercisable | 6 years 4 months 17 days | ||
Vested and expected to vest | 7 years 7 months 28 days | ||
Aggregate Intrinsic Value | |||
Outstanding | $ 395,676 | $ 64,604 | |
Exercised | 72,208 | $ 2,400 | $ 3,000 |
Vested and exercisable | 192,296 | ||
Vested and expected to vest | $ 402,847 |
Stock-Based Compensation - Sc_2
Stock-Based Compensation - Schedule of Valuation Assumptions (Details) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Stock options outstanding | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Dividend rate | 0.00% | 0.00% | 0.00% |
ESPP | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Dividend rate | 0.00% | ||
Minimum | Stock options outstanding | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Risk-free interest rates | 0.32% | 0.30% | 1.51% |
Expected term (in years) | 3 years 6 months | 5 years | 5 years |
Volatility | 37.80% | 37.30% | 53.80% |
Minimum | ESPP | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Risk-free interest rates | 0.06% | ||
Expected term (in years) | 4 months 24 days | ||
Volatility | 37.70% | ||
Maximum | Stock options outstanding | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Risk-free interest rates | 1.19% | 1.47% | 2.47% |
Expected term (in years) | 6 years 9 months 18 days | 6 years 7 months 6 days | 10 years |
Volatility | 50.50% | 54.00% | 54.00% |
Maximum | ESPP | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Risk-free interest rates | 0.30% | ||
Expected term (in years) | 1 year 10 months 24 days | ||
Volatility | 56.00% |
Stock-Based Compensation - Sc_3
Stock-Based Compensation - Schedule of Restricted Stock Award Activity (Details) - Restricted stock - $ / shares | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Number of Shares | |||
Unvested, beginning balance (in shares) | 437,369 | ||
Granted (in shares) | 3,112,492 | 0 | |
Vested (in shares) | 124,026 | 0 | |
Cancelled/forfeited (in shares) | (53,250) | ||
Unvested, ending balance (in shares) | 3,372,585 | 437,369 | |
Weighted-Average Grant-Date Fair Value Per Share | |||
Unvested, beginning balance (in dollars per share) | $ 3.54 | ||
Granted (in dollars per share) | 27.16 | $ 3.54 | |
Vested (in dollars per share) | 5.07 | ||
Cancelled/forfeited (in dollars per share) | 32.11 | ||
Unvested, ending balance (in dollars per share) | $ 24.83 | $ 3.54 |
Stock-Based Compensation - Sc_4
Stock-Based Compensation - Schedule of Share-based Compensation Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
Share-based compensation expense | $ 17,016 | $ 5,264 | $ 3,648 |
Customer support and operations | |||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
Share-based compensation expense | 153 | 22 | 25 |
Marketing | |||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
Share-based compensation expense | 2,325 | 869 | 541 |
Technology and development | |||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
Share-based compensation expense | 6,931 | 2,130 | 1,486 |
General and administrative | |||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
Share-based compensation expense | $ 7,607 | $ 2,243 | $ 1,596 |
Related Party Arrangements (Det
Related Party Arrangements (Details) $ in Millions | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2021shares | Dec. 31, 2021shares | Dec. 31, 2020USD ($)employee | |
Related Party Transaction [Line Items] | |||
Stock options exercised (in shares) | 4,495,889 | ||
Affiliated entity | |||
Related Party Transaction [Line Items] | |||
Number of executive employees | employee | 2 | ||
Stock options exercised (in shares) | 1,800,000 | ||
Related party promissory note receivable | $ | $ 3.1 | ||
Related party interest rate | 2.83% |
Income Taxes - Schedule of Inco
Income Taxes - Schedule of Income (Loss) before Income Tax, Domestic and Foreign (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |||
United States | $ (46,241) | $ (35,542) | $ (52,685) |
Foreign | 8,528 | 4,141 | 1,552 |
Loss before provision for income taxes | $ (37,713) | $ (31,401) | $ (51,133) |
Income Taxes - Schedule of Comp
Income Taxes - Schedule of Components of Provision for Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Current tax benefit (expense) | |||
Federal | $ 0 | $ 2 | $ 0 |
State | (257) | (132) | (19) |
Foreign | (1,650) | (1,019) | (240) |
Total current tax expense | (1,907) | (1,149) | (259) |
Deferred tax benefit (expense) | |||
Federal | 0 | 0 | 0 |
State | 0 | 0 | 0 |
Foreign | 864 | (14) | 0 |
Total deferred tax benefit (expense) | 864 | (14) | 0 |
Provision for income taxes | $ (1,043) | $ (1,163) | $ (259) |
Income Taxes - Schedule of Effe
Income Taxes - Schedule of Effective Income Tax Rate Reconciliation (Details) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |||
Federal income taxes at statutory rate | 21.00% | 21.00% | 21.00% |
State income tax, net of federal benefit | 11.37% | 2.93% | 3.09% |
Increase in valuation allowance | (66.51%) | (26.26%) | (25.27%) |
Stock-based compensation | 31.08% | 0.00% | 0.00% |
Other | 0.29% | (1.37%) | 0.67% |
Effective income tax rate | (2.77%) | (3.70%) | (0.51%) |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Operating Loss Carryforwards [Line Items] | |||
Increase in valuation allowance | $ 25,085,000 | $ 8,246,000 | $ 12,919,000 |
Income tax examination, penalties and interest accrued | 0 | 0 | |
Unrecognized tax benefits | 0 | 0 | $ 0 |
Unrecognized tax benefits, penalties and accrued interest | 0 | $ 0 | |
US | |||
Operating Loss Carryforwards [Line Items] | |||
Net operating loss carryforwards | 272,100,000 | ||
State | |||
Operating Loss Carryforwards [Line Items] | |||
Net operating loss carryforwards | $ 123,900,000 |
Income Taxes - Schedule of Defe
Income Taxes - Schedule of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Deferred tax assets | ||||
Net operating loss carryforwards | $ 67,253 | $ 45,531 | ||
Accrued expenses | 2,561 | 1,328 | ||
Stock-based compensation | 4,272 | 1,535 | ||
Operating lease liabilities | 642 | 1,107 | ||
Other | 1,865 | 738 | ||
Gross deferred tax assets | 76,593 | 50,239 | ||
Deferred tax liabilities | ||||
Fixed assets and intangible assets | (112) | (223) | ||
Operating lease right-of-use assets | (485) | (825) | ||
Other | (848) | 0 | ||
Gross deferred tax liabilities | (1,445) | (1,048) | ||
Valuation allowance | (74,244) | (49,159) | $ (40,913) | $ (27,994) |
Net deferred tax assets | $ 904 | $ 32 |
Income Taxes - Summary of Valua
Income Taxes - Summary of Valuation Allowance (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Deferred Tax Asset, Valuation Allowance [Roll Forward] | |||
Balance at the beginning of the period | $ 49,159 | $ 40,913 | $ 27,994 |
Increase in valuation allowance | 25,085 | 8,246 | 12,919 |
Balance at the end of the period | $ 74,244 | $ 49,159 | $ 40,913 |
401(k) Defined Contribution P_2
401(k) Defined Contribution Plan (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Defined Contribution Plan Disclosure [Line Items] | |||
Employer matching contribution, percent of employer match | 50.00% | ||
Employer matching contribution, percent of employees' gross pay | 3.00% | ||
Maximum annual employer contributions per employee | $ 1,000 | ||
Employer contribution | 200,000 | $ 200,000 | $ 100,000 |
Profit-sharing | |||
Defined Contribution Plan Disclosure [Line Items] | |||
Employer contributions, profit sharing | $ 0 | $ 0 | $ 0 |
Commitment and Contingencies -
Commitment and Contingencies - Narrative (Details) | Dec. 31, 2021USD ($)claim | Dec. 31, 2020USD ($) |
Indemnification agreement | ||
Loss Contingencies [Line Items] | ||
Loss contingency, number of claims | claim | 0 | |
Loss contingency accrual | $ 0 | $ 0 |
VAT Inquiry from Ireland Revenue | ||
Loss Contingencies [Line Items] | ||
Loss contingency accrual, current | $ 3,800,000 |
Commitment and Contingencies _2
Commitment and Contingencies - Schedule of Reserve for Transaction Losses (Details) - Transaction losses - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Loss Contingency Accrual [Roll Forward] | |||
Beginning balance | $ 3,250 | $ 798 | $ 497 |
Provisions for transaction losses | 29,596 | 19,663 | 7,859 |
Losses incurred, net of recoveries | (29,712) | (17,211) | (7,558) |
Ending balance | $ 3,134 | $ 3,250 | $ 798 |
Accrued Expenses and Other Cu_3
Accrued Expenses and Other Current Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Loss Contingencies [Line Items] | ||||
Trade settlement liability | $ 18,924 | $ 16,700 | ||
ESPP employee contributions | 1,551 | 0 | ||
Accrued transaction expense | 12,639 | 6,399 | ||
Accrued marketing expense | 10,788 | 4,883 | ||
Accrued salaries and benefits | 2,923 | 1,960 | ||
Other accrued expenses | 16,724 | 6,550 | ||
Total | 66,683 | 39,742 | ||
Transaction losses | ||||
Loss Contingencies [Line Items] | ||||
Reserve for transaction losses | $ 3,134 | $ 3,250 | $ 798 | $ 497 |
Segment and Geographical Info_3
Segment and Geographical Information - Narrative (Details) | 12 Months Ended |
Dec. 31, 2021segment | |
Segment Reporting [Abstract] | |
Number of operating segments | 1 |
Segment and Geographical Info_4
Segment and Geographical Information - Schedule of Revenue and Long-Lived Assets by Geographic Area (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenue | $ 458,605 | $ 256,956 | $ 126,567 |
Long-lived assets | 14,551 | 15,280 | |
United States | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenue | 338,190 | 199,011 | 105,356 |
Long-lived assets | 7,523 | 8,633 | |
United Kingdom | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Long-lived assets | 2,229 | 441 | |
Canada | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenue | 56,916 | 29,871 | 12,501 |
Philippines | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Long-lived assets | 1,928 | 2,795 | |
Nicaragua | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Long-lived assets | 2,534 | 3,049 | |
Rest of world | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenue | 63,499 | 28,074 | $ 8,710 |
Long-lived assets | $ 337 | $ 362 |
Leases - Narrative (Details)
Leases - Narrative (Details) - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 |
Leases [Abstract] | ||
Tenant improvement allowance | $ 0 | $ 1,800,000 |
Leases - Schedule of Lease Cost
Leases - Schedule of Lease Costs and Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Leases [Abstract] | |||
Operating lease expense (in thousands) | $ 3,824 | $ 3,202 | $ 2,594 |
Weighted-average remaining lease term (in years) | 2 years 2 months 12 days | 2 years 7 months 6 days | 3 years |
Weighted-average discount rate | 5.00% | 5.80% | 6.20% |
Cash payments, net of receipts, included in the measurement of operating lease liabilities – operating cash flows | $ 3,538 | $ 3,315 | $ 2,927 |
Leases - Schedule of Lease Liab
Leases - Schedule of Lease Liability Maturity (Details) $ in Thousands | Dec. 31, 2021USD ($) |
Leases [Abstract] | |
2022 | $ 3,501 |
2023 | 1,565 |
2024 | 1,375 |
2025 | 0 |
2026 and Thereafter | 0 |
Total lease payments | 6,441 |
Less: Imputed interest | (294) |
Present value of operating lease liabilities | $ 6,147 |
Subsequent Events (Details)
Subsequent Events (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Jan. 01, 2022 | Dec. 31, 2021 | Sep. 30, 2021 |
Subsequent Event [Line Items] | ||||
Present value of operating lease liabilities | $ 6,147 | |||
Subsequent event | Forecast | Ireland multi-year lease agreement | ||||
Subsequent Event [Line Items] | ||||
Present value of operating lease liabilities | $ 4,000 | |||
2021 Plan | ||||
Subsequent Event [Line Items] | ||||
Common stock reserved for issuance, annual increase percentage | 5.00% | |||
2021 Plan | Subsequent event | ||||
Subsequent Event [Line Items] | ||||
Common stock reserved for issuance, annual increase percentage | 5.00% | |||
2021 ESPP | ESPP | ||||
Subsequent Event [Line Items] | ||||
Common stock reserved for issuance, annual increase percentage | 1.00% | |||
2021 ESPP | ESPP | Subsequent event | ||||
Subsequent Event [Line Items] | ||||
Common stock reserved for issuance, annual increase percentage | 1.00% |